Permira US CLO Manager LLC, an affiliate of long-time British asset manager and buyout firm Permira, has launched its first collateralized loan obligation (CLO) transaction, a $430.59 million deal led by J.P. Morgan Securities.
Expected to close December 20, the Menlo CLO I Ltd. transaction will have a non-call period through Jan. 20, 2027, and a reinvestment period ending Jan. 20, 2030.
The broadly syndicated deal is split into nine tranches, with the top two rated AAA, according to S&P Global Ratings. The $263.50 million portion is overcollateralized by 161.29%, and holds par subordination of 38.00% and an interest rate of three-month CME term SOFR plus 142 basis points. The $12.75 million tranche is overcollateralized by 153.85%, with par subordination of 35.00% and an interest rate of three-month CME term SOFR plus 165 basis points.
The last rated portion, a $3.19 million tranche rated B-, is overcollateralized by 107.82% and carries par subordination of 7.25% and an interest rate of three-month CME SOFR plus 630 basis points. Below that is a $36.40 million, unrated tranche of subordinated notes.
The CLO is collateralized by at least 90% senior-secured loans, cash, and eligible investments, with at least 85% of the loan borrowers to be based in the U.S., Canada or U.K.
Permira stems from London's storied J.F.Schröder & Co, which was founded in 1800 and specialized in funding trade between the Americas and Europe and major infrastructure projects such as railways and ports, according to the firm's website.
Permira US CLO Manager LLC and its affiliates have $80 billion in total assets under management, according to S&P Global.
