Haymarket Financial Said to Plan European CLO to Replace Deal

Haymarket Financial LLP, a London-based lender and money manager, plans to raise a collateralized loan obligation of more than 300 million euros ($390 million), three people with knowledge of the matter said.

The deal will refinance an existing CLO transaction, HayFin Ruby Luxembourg Sarl, said the people, who asked not to be identified because the deal is private. Natixis is arranging the new deal.

Sheena Shah, a spokeswoman for Haymarket who works for Brunswick Group LLP, declined to comment on the financing. Andrea Pucnik, a spokeswoman for Paris-based Natixis, hasn’t returned an e-mail and telephone call seeking comment.

HayFin Ruby CLO, raised in September 2011, comprised 200 million euros of AAA rated notes and as much as 333 million euros of unrated subordinated securities, Standard & Poor’s said Oct. 2011. Earlier this year S&P said the CLO had 260 million euros of performing assets and generated spread of 546 basis points, or 5.46 percentage points, up from 440 basis points in 2011.

The CLO’s reinvestment period, after which it can no longer buy debt, was due to end in March this year, S&P said.

Haymarket was founded in 2009 backed by investors including TowerBrook Capital Partners LP, Canada-based Public Sector Pension Investment Board and OMERS Private Equity Inc.

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.

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