BNP Paribas closes third European CLO on €411.25m

The firm’s latest CLO exceeded its initial target and focuses on senior-secured loans in Europe.

BNP Paribas Asset Management (BNPP AM) has closed its latest CLO at €411.25 million, focused on syndicated leveraged loans to European corporates.

BNPP AM Euro CLO 2018 is the fifth of the firm’s current generation of CLOs, bringing the total number of vehicles to three in Europe and two in the US.

The CLO is a portfolio of mostly senior-secured leveraged loans with a smaller portion of unsecured loans, second-lien and mezzanine positions and corporate bonds. It has six classes of notes rated by Moody’s and Fitch with varying rating levels offering different risk/return profiles.

The bulk of the notes are in the A class, which saw €248 million committed. Subsequent notes raised €36.5 million, €29.5 million, €24.25 million, €24.25 million, €21.75 million and €12 million across tranches B through F respectively. The remained was made up for M-1 and M-2 subordinated classes. All notes have a maturity date of April 2031.

Citigroup Global Markets structured and syndicated the deal, with the final size increasing from €360.25 million following demand from investors during placement. Institutional investors in the CLO were primarily European with some from the US and Asia, with part of the issue retained by BNPP AM in line with EU capital requirements.

The CLO is managed by BNPP AM’s global loans team headed Vanessa Ritter. The 20-strong team specialise in investments in leveraged loan financing through managed accounts and CLOs.