#United States #Dallas #Canyon Partners #Jefferies #CLO 2025-3

Canyon Partners Secures Fifth CLO of 2025

Canyon Partners, a prominent global alternative investment manager with assets amounting to $29 billion, recently announced the closure of its latest collateralized loan obligation (CLO), referred to as Canyon CLO 2025-3. This notable transaction amounted to $500 million and marks Canyon's fifth CLO issue of the year 2025, consolidating its position within the financial markets.

With this latest deal, Canyon has drastically increased its total assets under management (AUM) in the CLO segment to an impressive $12.1 billion, encompassing a total of 27 active CLOs. This significant expansion underscores Canyon's robust performance and strategic growth within the competitive financial landscape.

The recent CLO, Canyon CLO 2025-3, will be managed by Canyon's affiliate entity, Canyon CLO Advisors L.P., and was arranged in collaboration with Jefferies. One of the key highlights of this transaction is its two-year non-call period alongside a five-year reinvestment period, designed to comply with stringent European risk retention regulations. Canyon successfully achieved a weighted-average cost of debt (WACD) of S+158, which aligns with the most competitive rates in the current market.

In terms of specific deal structure, the transaction featured an oversubscribed senior triple-A tranche spread of S+123 basis points, indicating the high demand and confidence investors have in Canyon's CLO offerings. The majority equity for this CLO deal will be funded through the Canyon CLO Equity Fund IV L.P., reflecting Canyon's commitment to maintain a well-capitalized investment platform.

The year 2025 has witnessed remarkable momentum for Canyon’s CLO platform, with three new issue deals in the U.S. and two in Europe, aggregating approximately $2.4 billion in asset growth. Furthermore, the organization has refinanced or reset eight CLOs this year, accounting for around $3.2 billion of debt capital at more favorable weighted-average costs. This strategy may lead to increased distributions for investors in the equity tranches, reinforcing Canyon's proactive management style.

Recognizing its success, Raymond James ranked Canyon as the second-best equity-oriented collateral manager and the ninth overall among 100 managers as of the fourth quarter of 2025. Additionally, Nomura acknowledged Canyon's exceptional performance by positioning it first in trading market value increases over the past twelve months.

Canyon's partners, Erik Miller and Martin Downen, expressed their confidence in the company’s ongoing success. Miller noted, "This deal demonstrates our team's knack for maneuvering within a marketplace that favors tight liability spreads, allowing us to make informed decisions regarding our portfolio construction and urgent execution timelines.” Downen elaborated, asserting the transaction's significance in illustrating Canyon's robust abilities in managing its financing operations efficiently while offering resilient collateral profiles and attractive returns throughout various market fluctuations.

Founded back in 1990, Canyon employs a thorough value and credit-driven approach, engaging deeply with public and private corporate credit, asset-backed credit, and real estate investments. The firm consistently aims to seize excess returns by leveraging its specialized expertise and thorough research capabilities. As Canyon continues to navigate the complexities of the financial market, it aims to deliver exceptional investment solutions to its wide array of global institutional clientele. For additional information, visit Canyon Partners website.