Canyon Partners Successfully Closes Two New CLOs Approaching $1 Billion Mark

Canyon Partners' Recent Successful Closures of CLOs

Canyon Partners LLC, a prominent player in the world of alternative investments, recently marked a significant milestone in its investment journey by successfully closing two collateralized loan obligations (CLOs). The total value of these transactions approaches the impressive $1 billion mark. This strategic move not only underscores Canyon's evolving investment strategies but also reflects its commitment to serving its clients with impactful financial products.

Overview of the Transactions

The two CLOs in question are Canyon EUR CLO 2025-2 and Canyon US CLO 2025-2. The former, arranged by Citigroup Global Markets Limited, is pegged at €400 million, contributing to Canyon's European CLO assets under management (AUM) of €1.8 billion (approximately $2.1 billion). The transaction features a two-year non-call period and a five-year reinvestment period, firmly establishing itself as Canyon's fourth European CLO since breaking into the market in 2023.

On the other hand, the Canyon US CLO 2025-2, which is arranged by BofA Securities, adds another $500 million to Canyon's portfolio. This marks the 22nd active US CLO within Canyon's ever-expanding list, raising the US CLO AUM to a noteworthy $9.3 billion.

With these two additions, Canyon's total CLO AUM reaches an impressive $11.4 billion across 26 active CLOs. The majority of equity for both of these deals was financed through the Canyon CLO Fund IV L.P., showcasing Canyon's capability to leverage institutional capital effectively.

Historical Context and Future Outlook

Canyon Partners has a storied history, having launched and managed a total of 33 CLOs and collateralized debt obligations (CDOs) since its inception in 2001. This year alone, the firm has successfully issued four CLOs while refinancing or resetting six existing CLOs. This is a bold move that accounts for about $2.5 billion of debt capital aimed at optimizing their financial structure, ultimately allowing increased distributions to the equity tranche. Notably, Canyon received glowing commendations, positioning itself as the #2 equity-oriented collateral manager and #9 overall, according to Raymond James' evaluations of 100 managers.

A Strategic Vision for Investment

Erik Miller, a Partner and Co-Head of Canyon’s CLO business, emphasized the company's resilient approach: “Successfully closing these two CLOs demonstrates our commitment to serving our clients by strategically expanding our CLO platform and identifying the most robust investment opportunities.” His sentiments were echoed by Martin Downen, who highlighted the dedication of the team in navigating a challenging environment, making these two closures achievable amidst competitive market conditions.

Moving forward, Canyon Partners remains ambitious as it aims to diversify and enhance its investment landscape further. The successful closing of these CLOs not only enhances its reputation but also solidifies its status as a trusted partner for a wide array of institutional investors globally.

Conclusion

With a firm grip on alternative investments, Canyon Partners is making significant strides in the financial sector. As they gear up for what appears to be a promising future, stakeholder confidence continues to build, paving the way for innovative investment solutions that align with ever-evolving market demands. The recent closures are a testament to Canyon's strategic vision and operational excellence, setting the stage for future growth and success.

For more details about Canyon Partners, visit their website www.canyonpartners.com.