Press Release

Canyon Partners Closes Two CLOs in the US and Europe Totaling Over $1 Billion

May 28, 2024

The transactions mark the firm’s 20th and 21st active CLOs

DALLASMay 28, 2024 — Canyon Partners (“Canyon”), a $25+ billion global alternative investment manager, announced the closings of two collateralized loan obligations (CLOs) totaling over $1 billion. The €550 million European CLO, Canyon Euro CLO 2023-1, and the $500 million US CLO, Canyon CLO 2023-2, will be managed by its affiliate, Canyon CLO Advisors L.P. The deals were arranged by Jefferies and Deutsche Bank.

These are the fifth and sixth CLOs for Canyon CLO Fund III LP, which will fund the majority equity for both CLOs. With these closings, Canyon is actively managing 21 CLOs, totaling nearly USD $10 billion in combined CLO/par loan separate account AUM. Both Canyon Euro CLO 2023-1 and Canyon CLO 2023-2 have a 2-year non-call period and 5-year reinvestment period and were structured to comply with European risk retention regulations.

Canyon Euro CLO 2023-1 is the largest CLO to clear the European market since November 2017 and the 6th largest European deal ever. This is the firm’s second European CLO since its debut in the market in 2023 and brings Canyon’s European CLO AUM to approximately €1 billion. Canyon’s European CLO platform has been ranked first out of 100 managers for 2024 YTD cashflows by J.P. Morgan.

Canyon CLO 2023-2 represents Canyon’s first US new issue CLO of the year and was carefully ramped over the course of 2023 and early 2024, taking advantage of the volatility within the loan market to yield an attractive portfolio comprised of high-quality issuers.

“We are pleased to work with established partners in both transactions and welcome several new investors to our European platform, and are grateful for the steady confidence investors continue to place in us as we deliver on these opportunities,” said Erik Miller, Partner and Co-Head of Canyon’s CLO business.

“Our patience in ramping these portfolios generated significant dividends to our investors and showcased the benefits of having captive CLO equity,” said Martin Downen, Managing Director and Co-Head of Canyon’s CLO business. “The ability to warehouse assets at wider spreads and lower prices, as we waited for liabilities to tighten, allowed us to create our own arbitrage.”

About Canyon Partners, LLC

Founded in 1990, Canyon employs a deep value, credit intensive approach across public and private corporate credit, structured credit, and direct real estate lending and investing. The firm seeks to capture excess returns available to those investors with specialized expertise, rigorous research capabilities, and the ability to underwrite complexity. Canyon invests on behalf of a broad range of institutions globally.

For more information visit: www.canyonpartners.com.

Media Contact
Kris Cole
Prosek Partners
Pro-Canyon@prosek.com

 

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