3i Debt Management (3iDM) has closed Jamestown VII, a $510.5 million CLO, the firm said.
It is 3i’s second US CLO of 2015 and will focus on investing in dollar-denominated senior secured loans issued by sub-investment grade rated companies domiciled in America. The $322.5 million Class A1 notes, which are rated triple A by Moody’s and Fitch, have a coupon of Libor plus 155 basis points (bps).
The debt arm of listed private investment firm 3i Group has raised around $1.9 billion globally to date this year.
“Our core CLO business continues to show growth and we have successfully closed three CLOs this year,” Jeremy Ghose, chief executive and managing partner of 3iDM, said in a statement.
Jamestown VII has a four-year investment period and a non-call period of two years.
John Fraser, managing partner at 3iDM US, said the firm had raised $1.2 billion in the US during 2015. “We remain encouraged by investors’ demand for loan focused investments in the continued low interest environment,” he said.
The rest of the capital structure of the CLO includes:
– $60 million Class A2 notes rated Aa2, priced at Libor plus 215 bps;
– $22 million Class B notes rated A2, priced at Libor plus 320 bps;
– $29 million Class C notes rated Baa3, priced at Libor plus 375 bps;
– $26.5 million Class D notes rated Ba3, priced at Libor plus 550 bps;
– $10 million Class E notes rated B3, priced at Libor plus 675 bps.
3i manages 33 funds and has total assets under management of around $11 billion, as of 31 March. Last month, 3i launched the 3i Global Floating Rate Income Fund, an open-ended fund which will focus on investing in a diverse portfolio of primary senior secured floating rate corporate credit assets in Europe and the US.