CVC Credit Partners (CVC Credit) has priced Cordatus XIX, a Collateralised Loan Obligation (CLO) fund totalling EUR379 million arranged by Barclays.
This will be the fifth CLO fund raised by CVC Credit in 2020 and increases our aggregate global issuance for the year to cUSD2.0 billion (cEUR1.7 billion). It is also the third European CLO fund raised, following the closing of Cordatus XVII in June (EUR290 million) and Cordatus XVIII in November (EUR383 million), together these three funds total more than EUR1 billion.
Cordatus XIX was assembled in just six weeks from a warehouse which opened in October and will have a four-year reinvestment period (which is a market first in Europe post-Covid). As with previous Cordatus CLOs, the fund is primarily comprised of broadly syndicated First Lien Senior Secured Loans.
Guillaume Tarneaud, Senior Managing Director and Portfolio Manager at CVC Credit Partners, says: “We are delighted to have priced our third European CLO of the year and pleased to have constructed a robust portfolio by taking advantage of attractive loan prices pre US elections. This latest raising increases our aggregate CLO AUM in Europe to circa USD7.5 billion.”
Gretchen Bergstresser, Global Head of Performing Credit at CVC Credit Partners, says: “Despite the challenging economic environment we have continued to grow our CLO business in 2020 and now have global CLO assets of more than USD17 billion. We have a top class, transatlantic performing credit business, split evenly between London and New York and we hope our next US focused CLO will come to market soon.”
Closing is expected in January 2021 and is subject to customary closing conditions.
