AXA IM closes first US Collateralised Loan Obligation
AXA Investment Managers (AXA IM) today announces the close of the Allegro CLO I Ltd / LLC ("Allegro CLO"), a $370million Collateralised Loan Obligation (CLO). This marks the first issuance of a pure US CLO and first US CLO 2.0 (post 2009 financial crisis) managed by AXA IM.
Allegro CLO portfolio consists of corporate assets only and must have a minimum of 90% first-lien senior secured leveraged loans. Up to 10% of the portfolio may consist of, among others, second-lien loans and unsecured loans. The Allegro CLO notes have been purchased by institutional US investors only.
Jean-Philippe Levilain, Head of US Structured Finance at AXA IM, comments:
"We are very pleased to have successfully closed our first US CLO. Investor interest was high at all levels of the capital structure, which is encouraging for the future of the US platform we're building."
AXA Investment Managers intends to increase activity in the structured finance team globally, considering future CLOs that would comply with the retention rules of the CRD IV regulations, offering the opportunity for certain types of institutional investors to gain exposure to this asset class.
"AXA Investment Managers has for many years been a leading player in the CLO space in Europe and historically an investor in the US CLO market, so it was the natural next step to extend our expertise into the more mature and diversified US market." explains Jean-Philippe Levilain. "The securitised market has proved resilient and we are seeing increased demand post global financial crisis, with issuance of CLOs reaching record highs in 2013. We see the high yield loan and CLO markets becoming increasingly global, therefore our intention is to be active in both the European and US markets. We have several more deals in the pipeline for this year alone."
The team managing Allegro CLO, based in the US, is part of the Corporate Credit team within AXA Investment Managers Structured Finance, an expertise of AXA Investment Managers. The Corporate Credit team of AXA Investment Managers consisting of 32 professionals currently manage €9.0 billion of funds, CLOs and dedicated mandates. CLOs represent €1.5 billion.
Notes to editors
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 Structured Finance
The AXA Investment Managers Structured Finance team has a 13 year track record and manages €21.3billion. The team consists of 66 professionals covering capital markets, insurance, financial services and private equity. A 22-strong team of credit analysts work alongside the team, with personnel based in the US and Europe. All information as at 13/02/2014.
About AXA Investment Managers
AXA Investment Managers is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA Investment Managers is one of the largest European-based asset managers with approximately €536 billion in assets under management as of the end of September 2013. AXA Investment Managers employs over 2,100 people around the world and operates out of 22 countries.
Issued by AXA Investment Managers SA. This press release is as dated and for information purposes only. Past performance is not a guide to future performance. The views expressed do not constitute investment advice and do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. No representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. No financial decisions should be made on the basis of the information provided. There is no guarantee that any employee of AXA Investment Managers will remain so employed and will continue to work within the AXA Investment Managers Structured Finance team at any time.
Notes issued by Allegro CLO have been placed by the Placement Agent only to institutional US investors.
AXA Investment Managers, Inc. is a wholly owned indirect subsidiary of AXA Investment Managers and is registered with the US Securities and Exchange Commission.