Second Sale of US Collateralized Loan Obligation (CLO) Arranged by Arini for $505.2 Million
Arini Prices Second US CLO at $505.2 Million
Arini, a London-based alternative credit firm, has made its mark in the US CLO market with the successful pricing of its second US Collateralized Loan Obligation (CLO), named Arini US CLO II, at $505.2 million (£376 million).
The firm, which specializes in opportunistic credit strategies, particularly in European and US markets, has been targeting the equity tranches of CLOs, including the US CLO market. Arini's strategy is backed by a substantial anchor investment from a Canadian investor.
Jonathan Abrahamson, the US CLO portfolio manager for Arini, stated that the successful pricing of Arini US CLO II indicates continued strong demand from investors and positive market reception. This success aligns with Arini's aim to replicate its successful European strategy in the US and become a consistent issuer in the US CLO market.
Mehdi Kashani, head of structured credit at Arini, oversees the global CLO platform. In this transaction, Morgan Stanley acted as the arranger. The entire debt stack of Arini US CLO II was fully placed, but no specific details about the loans in the portfolio or the terms and conditions have been disclosed.
With the successful issuance of Arini US CLO II, the firm's total CLO assets under management in the US now stand at $3.85 billion. However, the total CLO assets under management at Arini globally remains undisclosed.
Arini's growth strategy in the US CLO market involves raising direct lending funds aimed at sponsor-backed middle-market companies and expanding its CLO investment activities by leveraging co-investments and investor demand. The firm seeks to capitalize on the premium yield opportunities available in CLO equity tranches amid growing global investor interest in private credit.
[1] Arini Press Release, July 2022 [2] Arini Website, Accessed July 2022
The successful pricing of Arini US CLO II, a US Collateralized Loan Obligation, has further solidified Arini's presence in both the European and US finance industries. With substantial anchor investment from a Canadian investor, the firm aims to replicate its successful European strategy in the US and consistently issue CLOs in the US finance market.
%20Arranged%20by%20Arini%20for%20%24505.2%20Million){kind=link}