Palmer Square Capital Management has closed on its second collateralized loan obligation in six months.
The $464 million Palmer Square CLO 2013-2 closed Sept. 17; it follows on the heels of the $362 million Palmer Square CLO 2013-1 in April. Both transactions were arranged by JPMorgan Chase & Co.
The latest deal has a $266.1 million class rated ‘AAA’ by Standard & Poor’s that was marketed at an interest rate of 140 basis points over three-month Libor, according to a presale report. Another $10 million AAA-rated class was marketed with a fixed rate coupon of 3.121%.
The CLO is non-callable for two years and it has a four-year reinvestment period.
Palmer Square is a boutique credit and alternative investments manager with approximately $2.8 billion in assets under management. The firm is majority-owned by Montage Investments, which is the asset management arm of Leawood, Kansas-based Mariner Holdings, a $24 billion financial services firm.
“We always believed that the CLO space was a natural extension of our investment platform given our team’s experience and competitive advantage in structure and credit. Leveraging these two successful offerings, we will continue to enhance our CLO platform and execute on investment opportunities across corporate and structured credit, long/short credit and other alternative strategies,” Christopher D. Long, president of Palmer Square Capital Management, said in a press release.