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 ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial