3i closes first European CLO fund, Harvest VII
3i Group plc (“3i” or “3i Group”), an international investor, today confirms the closing of a collateralised loan obligation (“CLO”) fund, Harvest VII (“Harvest VII”), via co-arrangers Resource Capital Markets and Natixis. Harvest VII, a €310 million CLO, is the first European CLO raised by 3i Debt Management (“3iDM”) since it was established in 2011.
An aggregate of €268 million of investment grade debt in five classes and, in addition, €42 million of subordinated notes were issued. 3i Group has committed to take a minority stake in the subordinated notes. The vehicle will have a final legal maturity of October 2025. Harvest VII will focus on investing in European senior secured loans backing private equity buyouts in Europe.
Simon Borrows, Chief Executive of 3i Group, commented: “Over the last year, we have made significant progress in growing and developing our global Debt Management business. Closing Harvest VII is further evidence of the progress we are making to expand our Debt Management business and generate further income from third-party assets under management.”
Jeremy Ghose, Managing Partner and 3i Debt Management CEO said: “We continue to demonstrate the strength of our platform and our capabilities to successfully launch and close new funds. In the last 10 months, 3i Debt Management has successfully closed two US CLOs (US$950 million) as well as Harvest VII. One of our priorities remains to strengthen our position as a leading global manager of senior loans through further launches of CLOs in the US and Europe.”
3i Debt Management has grown substantially since it was established in 2011. On a pro forma basis, the total assets under management ("AUM") of 3iDM are approx. £6.7 billion compared to £6.4 billion at 31 March 2013. This demonstrates the strength of our platform and concrete progress against our objective to grow income from third-party assets under management over time.
-Ends-
For further information, contact:
3i
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com
Notes to editors:
Harvest VII
The transaction has a 4-year investment period and a non-call period of 2 years. The capital structure is as follows:
| Class Par | (MM) | (S&P/Fitch) | Coupon |
|---|---|---|---|
| A | 177.0 | AAA/AAA | E + 135 |
| B | 34.0 | AA+/AA+ | E + 175 |
| C | 20.0 | A/A | E + 280 |
| D | 13.6 | BBB/BBB+ | E + 370 |
| E | 23.0 | BB/BB | E + 550 |
| SUB | 42.0 |
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas.
www.3i.com
About 3i Debt Management
3i Debt Management specialises in the management of third-party funds investing in non-investment grade debt issued by medium and large European and US companies. 3i Debt Management was founded through the acquisition of MIM in February 2011 and as at 31 March 2013 had total AUM of approximately £6.4 billion.