Citi spin-off brings third CLO of year as bulging pipeline softens mezz

citi
By Will Caiger-Smith
09 Sep 2014

Napier Park, the $6bn hedge fund that was spun off from Citi in 2013, is set to price its third CLO of 2014 in the next two to three weeks. Several other deals are in the pipeline but while demand for CLO equity is strong, widening mezzanine spreads are making that part of the capital stack hard to place.

Regatta V will be Napier Park’s third CLO of the year and its fourth CLO 2.0. It is $500m and should be priced sometime in September, said a person familiar with the transaction. Citi is arranger.

Equity demand so far has been strong but widening mezzanine tranches are ...

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