Crestline closes $359m CLO

Denali Capital CLO XII will have a four-year reinvestment period and a two-year non-call period.  

Crestline Investors has closed on a $358.8 million collateralised loan obligation, the firm said on Thursday.

Denali Capital CLO XII will be backed by a portfolio of senior-secured loans and have a four-year reinvestment period and a two-year non-call period.

The CLO was issued by the Crestline Denali Capital unit, a partnership formed two years ago by Crestline and Denali Capital. BNP Paribas acted as arranger.

Crestline Denali's previous CLO issuance was the $413.7 million Denali Capital CLO XI, which closed last year.

“We are pleased with the successful issuance of CLO XII in the midst of challenging debt capital markets conditions and an evolving regulatory framework. It affirms the benefits of the Crestline Investors platform and our ability to engage with a global base of investors,” David Killion, chief executive of Crestline Denali, said.

Douglas Bratton, chief executive at Crestline, said the CLO was compliant with both US and European risk retention rules. “We believe the market will continue to differentiate between managers that have prepared for the new regulatory regimes, and those that have not,” he said.

Crestline was founded in 1997 in Fort Worth, Texas. The firm is a credit-focused alternative investment manager with about $10.3 billion in assets. The company also has offices in New York, Chicago, London, Toronto and Tokyo.

Denali Capital is an asset manager located in Oak Brook, Illinois. The firm handles leveraged commercial loans and other related strategies. It has about $1.7 billion in assets under management.