Fair Oaks introduces delayed draw into euro CLO

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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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