AXA IM closes "Allegro III", its first CRD IV compliant CLO
AXA Investment Managers (AXA IM) today announces the close of the Allegro CLO III Ltd / LLC ("Allegro CLO"), a $415 million Collateralised Loan Obligation (CLO). This marks the third issuance of a pure US CLO and the first Capital Requirements Directive IV (CRD IV) compliant CLO managed by AXA IM.
The Allegro CLO III portfolio consists of corporate assets only and will have a minimum of 90% first-lien senior secured leveraged loans. Up to 10% of the portfolio may consist of second-lien loans and high yield bonds.
Jean-Philippe Levilain, Co-Head of Loans & Private Debt at AXA IM, comments: "The Allegro CLO III notes have been oversubscribed across the capital structure. The notes have mainly been purchased by European and US institutional investors. The market opportunity for this third issuance of a pure US CLO mainly came from a strong pipeline in the US coupled with high yield spreads widening as result of the oil price decline."
Deborah Shire, Head of Structured Finance at AXA IM said: "Our ability to issue our first CRD IV compliant CLO marks another milestone in AXA IM's increased activity in the structured finance space globally this year and demonstrates the strong backing we have from our investors. Structuring CRD IV compliant CLOs allows us to work with both European and US domiciled investors to help them in their search for yield while carefully managing downside risk. Subject to market conditions, our intention is to issue additional CRD IV compliant European and US CLOs going forward."
The team managing Allegro CLO is based in the US and is part of AXA IM's Structured Finance and Fixed Income team. Within this, AXA IM's Loan and Private Debt team manages €5.9, with CLOs representing €1.2 billion.1
Notes to editors
1. As at 31 March 2015
2.0 CLO: CLO issued post-financial crisis of 2009
CRD IV (Capital Requirements Directive) : The CRD IV package which transposes – via a Regulation and a Directive – the new global standards on bank capital (commonly known as the Basel III agreement) into the EU legal framework, entered into force on 17 July 2013.
AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meet their financial goals. By combining investment insight and innovation with robust risk monitoring, we have become one of the largest asset managers in Europe with ambitions to become the chosen investment partner of investors around the world. With approximately €679bn in assets under management as of end June 2016, AXA IM employs over 2,350 people around the world and operates out of 29 offices in 21 countries. AXA IM is part of the AXA Group, a global leader in financial protection and wealth management.
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