Deal secured for a second Collateralized Loan Obligation (CLO) by Obra Capital that surpasses the $500 million mark.
Obra Capital Expands into Structured Credit with Second CLO
Obra Capital, a leading alternative investment firm, has taken a significant step forward in its strategy to diversify its product offering by issuing its second Collateralized Loan Obligation (CLO). The second CLO, priced at $504.3 million (£378.6 million), follows the successful closing of the inaugural CLO at $403.75 million (£303.2 million) in December last year.
Both CLOs will be managed by Scott Macklin, head of US leveraged finance, and Peter Polanskyj, the firm's chief investment officer, who will also oversee both CLOs. The placement agent for Obra Capital's second CLO is Morgan Stanley, while Milbank acts as the legal representative.
The issuance of these CLOs allows Obra Capital to broaden its asset-based lending and credit-related product suite, addressing a wider investor base. The CLO structures segment risk into tranches, enabling Obra Capital to optimize the risk-return profile by managing exposure across senior and junior tranches that offer different yields based on risk appetite.
By participating in CLO markets, Obra Capital positions itself competitively within alternative credit strategies that attract institutional investors seeking structured credit exposure with potential for enhanced returns. The firm's concrete steps in structured credit markets, as indicated by the issuance of CLO entities and related class notes on the Cayman Islands Stock Exchange, are consistent with the objectives outlined above.
Peter Polanskyj expressed satisfaction with the closing of Obra CLO 2, referring to the momentum of the successful inaugural CLO offering. The issuance of these CLOs is part of an effort to diversify Obra Capital's product offering across alternative assets and structured credit.
While specific public details on Obra Capital's strategic statements are limited, the firm's actions demonstrate its commitment to expanding into structured credit products to enhance investment complexity and potential returns while managing risk exposure.
- Obra Capital's strategy to diversify its product offering has led to the issuance of its second Collateralized Loan Obligation (CLO), which is in the realm of finance.
- The CLO structures segmented by Obra Capital enable the firm to optimize its risk-return profile, as it manages exposure across senior and junior tranches that offer different yields based on risk appetite, thereby broadening its asset-based lending and credit-related product suite, all within the finance sector.
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