Crestline Investors has held the final close on its newest collateralised loan obligation on $409.44 million, the company said last week.
The Crestline Denali CLO XV is backed by a portfolio focused on senior secured loans, according to a statement on 10 May. The CLO has a five-year reinvestment period and a two-year non-call period. Natixis Securities America acted as the arranger for the transaction.
Crestline’s CLO vehicles are managed by its Crestline Denali unit, a partnership with Denali Capital.
The CLO portfolio was 80 percent ramped as of 10 May, a Moody’s report shows. The rating agency also stated that at least 92.5 percent of the portfolio must consist of senior secured loans, and 7.5 percent may consist of first lien last-out loans, second lien loans and other unsecured loans.
More than 90 percent of the loan issuers in the CLO are US based, while the remaining issuers are primarily from Canada, the UK and western Europe, a source familiar with the matter said. The average investment position across all of the firm’s syndicated facilities is $6 million, this person added.
The latest vehicle marks the first CLO that Crestline Denali has sponsored this year after risk-retention rules came into effect in US in December. Similar rules in European kicked in in 2011. These new regulations require fund managers to hold a 5 percent interest in securitised assets they manage.
“With risk-retention rules now the standard across both the United States and Europe, the success of this transaction shows that we are well positioned to pursue new issuances that meet current regulatory demands,” Douglas Bratton, managing partner and chief investment officer of Crestline, said in the statement.
The Oakbrook, Illinois-based Crestline Denali sponsored two CLOs last year: the $361 million Crestline Denali CLO XIV and the $358.8 million Denali Capital CLO XII, the statement shows.
The firm was not immediately available to comment further.
Crestline Investors is an institutional alternative investment firm, specialising in credit and opportunistic investments, with $8.80 billion in assets under management as of 10 May. The firm was founded in 1997.