After just closing its €350 million ($467.7 million) European collateralized loan obligation, alternative asset manager Carlyle is planning to come to market with more CLOs this year, the company said in a press release announcing the deal’s close.
“We are pleased to be at the forefront of the re-emergence of the European CLO market and our intention is to be a repeat issuer similar to our U.S. CLO business,” said Colin Atkins, head of European structured credit at the firm.
The firm just closed its first European CLO this year called Carlyle Global Market Strategies Euro CLO 2013-1 arranged by Barclays, the release said. The new deal will mostly buy new-issue and secondary market European senior secured bank loans.
The transaction is one of the first transactions in the region since the financial crisis and it also priced just a week after the European Banking Authority released a consultation paper that calls into question an interpretation of new risk retention rules, threatening European new-issue CLO deals.
Structured Finance News reported on June 3 that the company priced its deal over the last week of May, quoting a person familiar with the deal that comprises three floating-rate and two fixed-rated tranches rated by Standard & Poor’s.
The €180 million ‘AAA’-rated senior tranche was marketed at six-month Libor plus 180 basis points, according to S&P’s presale report.
In February of 2012, Carlyle made its first CLO Europen purchase when it bought management contracts on €2.1 billion of European CLO assets from Highland Capital Management, the release said.
Carlyle’s structured credit/CLO business has $16.7 billion in assets under management, $5.97 billion (€4.7 billion) of which are in Europe. This unit forms part of the firm's Global Market Strategies platform, which has over $33 billion in assets under management as of March 31.