CLO managers don't want the exit doors closed on them.

Last month, a bank consortium syndicated a $1.2 billion exit loan for Chicago-based box maker Smurfit-Stone. The deal irked several CLO managers because its structure - it was set up to be funded two months after it closed - and lack of covenants effectively kept them from participating. The deal went on to be a hit, trading up after breaking on the secondary. And now some CLO managers wonder if the Smurfit deal will set a precedent and shut CLOs out of other exit loans.

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