Spire closes CLO on €387m

The CLO priced in March and has been arranged by Barclays.

Spire Partners, the London-based manager, announced it has closed its latest CLO on €387.4 million. The CLO was previously priced in March by Barclays.

Aurium CLO III will invest in senior secured, broadly syndicated non-investment grade credit. The debt will largely be from corporate entities based in Europe, according to a company announcement.

The latest CLO close takes Spire’s CLO assets above €1 billion. The firm previously closed the product’s predecessor, Aurium CLO II, on €360 million. The firm’s first CLO raised €300 million.

The most senior tranches of the CLO are set to yield Euribor plus 88 basis points. The subordinated portion of the CLO will yield Euribor plus 690 basis points, according to information released by Barclays at the time of the CLO pricing.

Spire holds a five percent stake in each of the classes of rated and unrated notes, in compliance with European risk-retention regulations.

Despite CLOs being a popular investment among institutional investors, the beginning of 2017 saw sluggish issuance. A lack of supply of underlying loans was to blame, managers previously told PDI.