First euro CLO switches to semi-annual

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By Tom Brown
23 Nov 2020

Penta CLO 2 has become the first CLO to switch its coupon payment from three month Euribor to six month Euribor, according to Fitch Ratings on Monday, following the flood of underlying loan borrowers choosing to push payments onto the longer timeline.

Partners Group, the collateral manager, has exercised its right to trigger the frequency switch, following a raft of switches from three to six month payments on the underlying leveraged loans backing the deal.

The Covid-19 crisis has pushed more leveraged loan borrowers into asking to switch their ...

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