PineBridge Investments has closed a EUR335m collateralised loan obligation (CLO) fund.
Euro-Galaxy III CLO BV will invest primarily in European senior secured loans. Barclays Bank PLC arranged the transaction.
The transaction features a variable funding note (VFN) that provides enhanced flexibility and efficient cash management during the ramp-up phase. It is the first European CLO to include a VFN since the 2008 financial crisis.
Adeel Shafiqullah, managing director of European leveraged finance at PineBridge, says: "We are very pleased to announce the completion of Euro-Galaxy III and to be a part of the re-opening of the European CLO market. The transaction demonstrates PineBridge's commitment to the asset class and we appreciate the support from our existing and new investors."
Euro-Galaxy III marks the 19th CLO that PineBridge has completed.
According to S&P Capital IQ LCD, as of 16 December 2013, year to date primary CLO issuance has been USD77.5bn in the US and EUR7.4bn in Europe.
PineBridge has previously issued two CLOs in the European market: Euro-Galaxy CLO BV, completed in September 2006 and Euro-Galaxy II CLO BV, completed in August 2007.