Canyon Partners Closes $403 Million BSL CLO
September 7, 2023
Transaction marks the firm’s 19th active CLO
DALLAS, Sept. 7, 2023 — Canyon Partners (“Canyon”), a $24 billion global alternative investment manager, today announced the closing of a $403 million broadly syndicated collateralized loan obligation (CLO), which will be managed by its affiliated Canyon CLO Advisors L.P. With this close, Canyon is actively managing 19 CLOs, totaling $9 billion in combined CLO/par loan separate account AUM.
The deal was arranged by Goldman, Sachs & Co. LLC and has a two-year non-call period and a market standard five-year reinvestment period. The CLO is structured to comply with European risk retention regulations. The equity will be funded through Canyon CLO Equity Fund III LP, which closed in July 2022.
Canyon has issued over 30 CLO transactions in the U.S. in the past decade. The firm priced Canyon CLO 2022-2 in December 2022. Canyon also debuted its first European CLO in March 2023, which made Canyon the first new manager in 13 months to price a CLO in Europe. Canyon CLO 2023-1 further builds upon this record of thoughtfully timed issuance.
“Canyon has a strong track record of providing our clients with comprehensive credit-oriented solutions and we look forward to building on that history through the continued expansion of our CLO platform,” said Erik Miller, Partner and Co-Head of Canyon’s CLO business. “Amid increased volatility across both the assets and liabilities, the team has been able to take advantage of these markets to curate portfolios we believe will generate attractive returns for our investors. We look forward to leveraging the expertise of our entire team to deliver on these opportunities for our partners.”
“With an oversubscribed AAA layer, the CLO received broad participation from existing and new investors,” said Martin Downen, Managing Director and Co-Head of Canyon’s CLO business. “As investors seek to enhance returns within the credit-oriented sleeves of their portfolios, we believe this CLO is well timed and presents an opportunity to take advantage of market developments over the next few years.”
About Canyon Partners, LLC
Founded and partner owned since 1990, Canyon employs a deep value, credit intensive approach across its investment platform. Canyon specializes in value-oriented special situation investments for endowments, foundations, pension funds, sovereign wealth funds, family offices and other institutional investors. The firm invests across a broad range of asset classes, including performing and distressed loans, corporate bonds, convertible bonds, securitized assets, CLOs, direct investments, real estate, arbitrage, and event-oriented equities.
For more information visit: www.canyonpartners.com.