Private lender 3i Debt Management (3iDM) has closed Jamestown IV at $617.5 million, its third CLO of 2014. So far this year, the firm has closed two CLOs in the US and one in Europe.
3iDM’s US arm has raised $1.03 billion in 2014, while its London headquarters has raised €425 million ($578.7 million), totalling $1.61 billion in commitments for the year.
Jamestown IV will focus on investing in US corporate debt and in secured loans backing private equity buyouts in the US. It has a four year reinvestment period and a non-call period of two years.
The CLO has eight tranches. Its capital structure includes $257 million in AAA notes with a Libor plus 1.50 percent coupon; $50 million in AAA notes with L + 1.35 percent; $77 million AAA notes with L+ 1.43 percent; $73.8 million in Aa2 notes with L + 2.00 percent; $26.4 million A2 notes with L + 2.80 percent; $36.0 million Baa3 notes with L + 3.50 percent; $33.6 million Ba3 notes with Libor + 5.00 percent; and $5.4 million B2 notes with L + 5.25 percent.
Jeremy Ghose, chief executive and managing partner at 3iDM, said in a statement: “This is our second US CLO this year, following the $416m raised in Q1. This has been possible thanks to the strong relationships held by our team with a range of market participants.”
In early March this year, 3iDM closed the $416 million US CLO COA Summit. A few weeks later, it closed its second European CLO, Harvest VIII at €425 million.
John Fraser, managing partner 3iDM US, commented: “We are pleased to have closed our second CLO in the US this year as we continue to see strong demand from our investors.”
Part of the listed 3i Group with investments across private equity, infrastructure and debt, 3iDM managed 28 funds with total AUM of approximately $11 billion, as at 31 March 2014.