Nomura Is Said to Seek Buyer for $2.5 Billion U.S. Leveraged-Loan Business
Nomura Said to Seek Buyer for $2.5 Billion Loan Unit
Tomohiro Ohsumi/Bloomberg
A pedestrian walks past the Nomura Holdings Inc. headquarters in Tokyo.
A pedestrian walks past the Nomura Holdings Inc. headquarters in Tokyo. Photographer: Tomohiro Ohsumi/Bloomberg
Nomura Holdings Inc., the Japanese bank that has been expanding in the U.S., is seeking a buyer for its management business that has about $2.5 billion in assets, according to two people familiar with the talks.
The Nomura unit oversees six collateralized loan obligations with $2.1 billion in assets as well as a $405 million fund, said one of the people, who declined to be identified because the talks are private.
Nomura’s planned sale comes amid increased CLO consolidation over the last year as prices of the debt rebound. GSO Capital Partners LP, the credit investment arm of Blackstone Group LP, bought Callidus Capital Management LLC last year, while the Carlyle Group purchased the loan assets overseen by Mountain Capital Advisors, Mizuho Alternative Investments LLC’s U.S. loan management business, and CLOs from Stanfield Capital Partners LLC in 2010.
Leveraged loan prices rose to 95.22 cents on the dollar Jan. 14, 6.27 cents higher from the same time last year, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index. The highest-rated portions of CLOs, graded AAA by S&P, climbed 3.5 cents last year as of Dec. 16 and yield spreads tightened to 215 basis points from 290 basis points a year earlier, according to Morgan Stanley data.
Peter Truell, a Nomura spokesman, declined to comment.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
To contact the reporter on this story: Kristen Haunss in New York at khaunss@bloomberg.net
To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net
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