Cutwater Asset Management Closes $415.4 Million Debut CLO
Natixis Acts as Sole Lead Arranger
Cutwater Asset Management, one of the world’s largest fixed income investment management firms, announced today that it has closed a $415 million Collateralized Loan Obligation (CLO). The notes are backed primarily by USD- denominated first lien senior secured broadly syndicated loans.
Natixis, the corporate, investment and financial services arm of Groupe BPCE, acted as Sole Lead Arranger for the offering.
The transaction marks Cutwater’s entry to the CLO market and will be managed by Alex Jackson, managing director and head of Cutwater’s Bank Loan Group.
“We are excited to launch our first loan offering which builds upon the Firm’s 20-year history of managing credit-oriented assets for institutions,” said Clifford D. Corso, CEO and Chief Investment Officer of Cutwater. “Cutwater's entry into the loan market is a natural fit as it combines our long history in managing various types of credit-based instruments with existing and extensive experience in managing Collateralized Debt Obligations.”
Kevin Alexander, Head of Fixed Income, Global Markets Americas at Natixis, said, “Natixis is pleased to have arranged, structured and placed this debut CLO for Cutwater Asset Management. We look forward to the opportunity to deepen our relationship with Cutwater.”
Commenting on the strong trajectory of this first CLO offering, Jackson stated: “It is the first in an expected series of CLO issues for Cutwater as well as complementary types of structured and leveraged finance funds. The partnership and support from Natixis was critical to the success of this transaction, especially as it was Cutwater’s debut in this market.”
The pricing details for Cutwater 2014-I, Ltd. are as follows :
MANAGER: Cutwater Investor Services Corp.
ASSET TYPE: Primarily USD 1 Lien Senior Secured BSL Loans
DEAL SIZE: $415.4 million
ARRANGER: Natixis Securities Americas LLC
NON CALL PERIOD: 2 years
REINVESTMENT PERIOD: 4 years
LEGAL FINAL MATURITY: 12 years
PRICE DATE: July 8 , 2014
SETTLE DATE: July 31 , 2014
PAYMENT FREQUENCY: Quarterly Beginning Jan 15, 2015
PLEASE NOTE ANY DECISION TO INVEST IN THE SECURITIES DESCRIBED HEREIN SHOULD BE MADE
AFTER REVIEWING THE FINAL OFFERING MEMORANDUM IN ITS ENTIRETY (INCLUDING THE RISK FACTORS
THEREIN) IN CONNECTION WITH SUCH SECURITIES, CONDUCTING SUCH INVESTIGATIONS AS THE INVESTOR
DEEMS NECESSARY AND CONSULTING THE INVESTOR’S OWN LEGAL, ACCOUNTING AND TAX ADVISORS IN ORDER
TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT IN
THE SECURITIES.
Cutwater Asset Management is a client-focused and solutions-based investment advisor focused exclusively on fixed income investments. With $23 billion in assets under management, Cutwater Asset Management is one of the largest fixed income investment managers in the world. Cutwater's model combines world-class investment expertise and risk management capabilities with exceptional client service, in-depth consultation, and extensive interaction between clients and the investment team. Our clients include state and local governments, financial institutions, pension funds, unions, insurance companies, corporations and consultants. Our investment philosophy is focused on delivering consistent and superior risk-adjusted returns by taking a long-term view of the market and applying a counter-cyclical and forward-looking approach to capital allocation. For more information, please visit our website at
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Vanessa Stephan
Global Head of External Communication at Natixis CIB, Groupe BPCE
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