Elmwood resets CLO as market slowly returns to pre-Covid formats

Bond market graph volatility from Adobe 22May20 575x375
By Paola Aurisicchio
19 Oct 2020

Citi arranged the reset last week of a $503.9m CLO managed by Elmwood Asset Management, extending the deal with a new five year reinvestment period as CLOs slowly return to pre-Covid format.

The reset for Elmwood includes $300m of senior notes priced at 145bp over three month Libor. The original $499.4m deal was priced by Citi in February 2019 at 135bp over Libor for the senior bonds.

Since the beginning of the pandemic, rising CLO liability costs have halted reset ...

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