Standard Chartered Bank has completed Start V CLO, its fifth CLO transaction under its Start CLO series.
The bank has sold the credit risk of a diversified pool of loans extended to more than 500 borrowers, 80% of which were located in Asia and the Middle East, with this fifth $1 billion synthetic CLO. The average credit quality of the initial pool was BB.
A dozen investors were issued the Start V CLO notes. Of the total note issuance, 58% went to Asia, 24% to the US, and18% to Europe. 76% of the notes were issued to leveraged money accounts, 12% to asset managers, and 6% to banks and insurance companies.
The notes were distributed pursuant to the exemptions from registration provided by Regulation S and Rule 144A.
StanChart was the arranger for the transaction, and the manager for the Class C notes.Royal Bank of Scotland was joint lead manager for the class A and class B notes.
The bank completed its first CLO, the $2 billion Start CLO in November 2005, followed by $1.6 billion Start II CLO in June 2006, $1.5 billion Start III CLO in December 2006 and $1.5 billion Start IV CLO in June 2007.