BNP Paribas Asset Management (‘BNPP AM’) announces the closing of BNPP AM Euro CLO 2019 B.V., a EUR 407.5 million securitisation vehicle that invests in a diversified portfolio of syndicated leveraged loans to European corporates. This is BNPP AM’s fourth new generation European CLO (Collateralised Loan Obligation), confirming its position as a major player in the loans and CLO markets.
The portfolio consists mainly of senior secured leveraged loans, with the balance made up of second-lien loans, mezzanine debt and/or corporate bonds. Seven classes of notes are rated by Moody’s and Fitch, with varying rating levels enabling investors to invest according to their risk/return objectives.
BNP Paribas Corporate & Institutional Banking structured the deal and successfully placed all tranches of the CLO with strong oversubscription from a wide range of institutional investors from Europe and Asia. Part of the issue was retained by BNPP AM, in accordance with the vertical risk retention rule of the EU’s Capital Requirements Regulation (‘CRR’) legislation.
BNPP AM Euro CLO 2019 is managed by BNPP AM’s Global Loans team, headed by Vanessa Ritter, consisting of 18 dedicated investment professionals in New York and Paris. The team specialises in investing in leveraged loan financing, through managed accounts and CLOs, as well as being a market leader in middle market corporate financing in Europe and the US.
The Global Loans team is part of BNPP AM’s Private Debt & Real Assets investment group that also includes SME (small and medium-sized enterprise) lending, structured finance, real estate debt and infrastructure debt. The Private Debt & Real Assets investment group consists of around 50 investment professionals and manages more than EUR 8 billion1 of client assets.
David Bouchoucha, CIO of Private Debt & Real Assets at BNP Paribas Asset Management, comments:
“We are very proud of the trust that investors in this CLO have placed in our leveraged finance capability, with the tight pricing of the rated tranches reflecting the quality of the team’s credit management capabilities. BNP Paribas Asset Management remains very committed to being a repeat CLO issuer and constantly improving the value that we add for all investors.”
Ratings assigned to notes issued by BNPP AM EURO CLO 2019 B.V.
|Class X Notes||Aaa(sf)/AAA(sf)||2.0||E+0.45%||100.00%||July 2032|
|Class A Notes||Aaa(sf)/AAA(sf)||248.0||E+1.10%||100.00%||July 2032|
|Class B-1 Notes||Aa2(sf)/AA(sf)||28.0||E+1.80%||100.00%||July 2032|
|Class B-2 Notes||Aa2(sf)/AA(sf)||10.0||2.40%||100.00%||July 2032|
|Class C Notes||A2(sf)/A(sf)||25.0||E+2.40%||100.00%||July 2032|
|Class D Notes||Baa3(sf)/BBB-(sf)||27.4||E+3.85%||100.00%||July 2032|
|Class E Notes||Ba3(sf)/BB-(sf)||21.6||E+5.63%||96.00%||July 2032|
|Class F Notes||B3(sf)/B-(sf)||10.0||E+8.22%||94.00%||July 2032|
Source: BNP Paribas Asset Management, as at 31 July 2019
* CLO pricing date: 10/7/19
Investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being in risk of capital loss.
BNP Paribas Asset Management
+44 (0)20 7063 7106
 Source: BNP Paribas Asset Management as at 31 July 2019