Z Capital Credit Partners, Z Capital‘s credit fund management arm, has closed its collateralized loan obligation at $350.5 million. The CLO has a four-year reinvestment period and is backed mostly by a pool of senior secured loans.
NEW YORK, Jan. 8, 2019 /PRNewswire/ — Z Capital Credit Partners, L.L.C. (“ZCCP”), the credit fund management arm of Z Capital Group, L.L.C. (“Z Capital”), announced today the closing of a $350.5 million collateralized loan obligation (“CLO”) managed by its affiliate, Z Capital CLO Management, L.L.C. (“Z Capital CLO Management”). The CLO has significant investment flexibility, including the ability to invest up to 50 percent of its assets in Caa-rated loans.
The CLO issued securities rated by Moody’s from Aaa through Ba3. Funds managed by ZCCP will retain 100 percent of the deal’s subordinated notes. Backed primarily by a revolving pool of broadly syndicated senior secured loans, the CLO has a four-year reinvestment period and an eight-year weighted average life test.
“We are pleased to have the support of new and existing investors and believe the vehicle is well-positioned to take advantage of current loan market volatility and future dislocations,” said Andrew C. Curtis, Managing Director and Head of ZCCP. “We think the transaction is a creative application of CLO structuring, which is suited to the late innings of the current credit cycle and consistent with our strategy of investing opportunistically.”
“We believe that the successful issuance of the CLO during a period of increased market volatility speaks to our principals’ track record in CLO and broadly syndicated bank loan management as well as our robust credit platform,” said James Zenni, Chief Executive Officer of Z Capital. “We think our expertise and track record in both par and stressed and distressed bank loan investments are a strong match with the investment flexibility of this vehicle.”
About Z Capital Credit Partners
ZCCP is the credit fund management arm of Z Capital. ZCCP invests across a range of credit including leveraged loans, private debt, and opportunistic / stressed credit.
About Z Capital Group
Z Capital is a privately held alternative asset management firm having over $2.3 billion of regulatory assets under management across complementary private equity and credit businesses. Z Capital manages both opportunistic, value-oriented private equity, and credit funds.
Z Capital’s investors are some of the largest and most sophisticated global institutional investors including public and corporate pension funds, university endowments, foundations, sovereign wealth funds, central banks, and insurance companies.
The Z Capital investment strategies and private equity portfolio companies are described at www.zcapgroup.net.