Fair Oaks introduces delayed draw into euro CLO

By Tom Brown
12 May 2020

Fair Oaks Capital is bringing its second euro CLO to market via JP Morgan, only the fifth deal issued since the Covid-19-induced lockdowns, bringing with it a delayed draw double-B tranche — an option to let the equity boost deal leverage once market conditions improve.

The issuer has already included delayed draw double-B notes in its US CLOs, but this is the first time the manager has included them in Europe.

The CLO has been issued without a double-B tranche, and with a fat equity tranche — €47m in a €251m deal.

A double-B ...

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