BNP Paribas closes CLO on €407.5m

The CLO was oversubscribed and raised capital from European and Asian institutions.

BNP Paribas Asset Management has closed its latest European CLO with €407.5 million.

The portfolio of BNPP AM Euro CLO 2019 consists mainly of senior secured leveraged loans with a balance made up of second-lien loans, mezzanine debt and corporate bonds. It is the fourth CLO in BNP Paribas’ fourth generation of vehicles.

Seven classes of notes are rated by Moody’s and Fitch with varying rating levels to enable investors to target their own risk-return objectives. The CLO has a total of nine tranches, with €248 million of the capital in class A notes, which all mature in July 2032.

BNP Paribas said the deal had strong oversubscription from a wide range of institutional investors based in Europe and Asia, with BNP Paribas retaining part of the issue in accordance with the EU’s Capital Requirements Regulation.

Commenting on the CLO’s closing, David Bouchoucha, CIO of private debt and real assets at BNP Paribas Asset Management, said: “We are very proud of the trust that investors in this CLO have placed in our leveraged finance capability, with the tight pricing of the rated tranches reflecting the quality of the team’s credit management capabilities.

“BNP Paribas Asset Management remains very committed to being a repeat CLO issuer and constantly improving the value that we add for all investors.”