(EUR) Coltrane CLO portfolio auction gets underway; linking mechanism detailed
Story date: 2008.4.11
London, April 15 (LCD) – Invites have now been sent out for the auction of the assets of the Coltrane market value CLO, sources said. Invitees include a select number of banks who have now been given access to the official portfolio of 78 names. They also have access to all the financial information and loan documentation stored in an electronic data room. The process will last for two weeks and is due to wrap up by April 29. The portfolio includes many well-known credits (category A), as well as some less well-known assets (category B). In order to maximise the value on the entire portfolio, bidders are incentivised to bid for the category B assets via a linking mechanism to the category A assets. Lenders who submit a winning bid on the category B assets will earn themselves the last look at a category A asset, sources said. Cairn Financial Products is handling the auction process, having been appointed by receiver KPMG as financial adviser to assist with realising Coltrane’s CLO portfolio. The portfolio exceeds €400 million face value, and the 78 credits are heavily biased towards the European market. The majority are senior (institutional) tranches, although there is some second-lien in the portfolio. Originally managed by Deerfield Capital, Coltrane was set up as a market value CLO with a face value of €498 million, consisting of loans sold to a number of institutional investors.
Credited to LCD – Sarah Husband
