BOSTON--(EON: Enhanced Online News)--Salus Capital Partners LLC (“Salus”) announced the closing of an additional $300 million note issuance by Salus CLO 2012-1, Ltd. (the “CLO”), bringing the aggregate amount of notes issued by the CLO to $550 million. The original CLO closed in February 2013 with a $250 million note issuance. A Salus subsidiary will act as the collateral manager of the CLO, which will invest primarily in senior secured asset-based loans originated by Salus.
“This transaction further demonstrates Salus’ ability to raise external capital and is an important step to support the growth of Salus into a leading asset manager and direct lender to the middle market”
“The overwhelming acceptance of the upsize from both existing and new investors demonstrates the continuing market validation of the Salus direct loan origination platform,” said Andrew H. Moser, President of Salus Capital Partners, LLC. “With like-minded investors and a team of veteran leadership, we are well positioned to foster a successful value proposition as we continue to serve the needs of the corporate middle-market.”
“This transaction further demonstrates Salus’ ability to raise external capital and is an important step to support the growth of Salus into a leading asset manager and direct lender to the middle market,” said Phil Gass, Managing Director of Investments of Harbinger Group Inc., Salus’ parent company.
As part of the transaction, Salus and its affiliates will contribute to the CLO approximately $167 million of their existing portfolio of loans. Securities with ratings between AAA through BB, one class of unrated secured notes and subordinated notes were placed with third-party investors and Salus affiliates. The CLO has a reinvestment period of three years, a non-call period of three years and a final maturity of March 2021. DBRS, Inc. rated all senior notes issued by the CLO.
Natixis Securities Americas LLC acted as arranger and placement agent for the transaction. Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to Salus.