Salus Capital Partners Closes $250 Million Collateralized Loan Obligation
BOSTON -- February 7, 2013
Salus Capital Partners LLC (“Salus”) today announced the closing of Salus CLO
2012-1, Ltd., a $250 million collateralized loan obligation (“CLO”) vehicle. A
Salus subsidiary will act as the collateral manager of the CLO, which will
invest in senior secured asset-based loans originated by Salus.
“As a first-time issuer, the overwhelming acceptance from institutional
investors has been a clear validation of our direct origination engine and
comprehensive monitoring platform as well as the vast market opportunity
within the corporate middle market,” said Andrew H. Moser, President of Salus
Capital Partners, LLC. “Having a like-minded and well versed partner in our
niche market position like Natixis Securities, was instrumental in the success
of our first offering.”
“The closing of Salus Capital’s inaugural CLO issuance is an important next
step for its continued growth” said Phil Gass, Managing Director of
Investments of Harbinger Group Inc. “This closing demonstrates Salus’ ability
to access broadly based, committed institutional capital as we look to expand
our direct lending business.”
As part of the transaction, Salus and its affiliates will contribute to the
CLO approximately $221 million of their existing portfolio of loans.
Securities with ratings between AAA through BB were placed with third-party
investors, and Salus and its affiliates retained the remainder, including the
subordinated notes. The CLO will have a reinvestment period of two years, a
non-call period of two years and a final maturity of eight years. 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
Miles Hill, 212-209-3844 x4
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