16 Nov 2012
3i closes first US CLO fund, Jamestown I
- Private Equity
An aggregate of $412.25 million of investment grade debt was issued in five classes and $48.95 million of subordinated notes was issued. 3i Group has taken a minority in the subordinated notes.
The launch of the fund is in line with 3i Debt Management’s strategy to build out its CLO platform following the recent transaction with Fraser Sullivan which created a US debt platform. Jamestown I is the first fund in a new series of CLOs to be issued by 3iDM US.
Jamestown I will focus on investing in senior secured loans backing private equity buyouts in the US and US corporate debt.
Simon Borrows, 3i Chief Executive, commented: “Jamestown I is further evidence of our commitment to grow our debt management business and third-party income. In the last six months, our debt management business has acquired 5 CLO management contracts from Invesco, established a US debt platform with Fraser Sullivan, and has raised our first US CLO fund. We now have a strong position across both the European and US debt markets, which further strengthens our investment proposition to investors.”
Jeremy Ghose, Managing Partner and 3i Debt Management CEO said: “We are pleased to have closed our first CLO fund so soon after establishing our US debt platform. This is a significant step and confirms the strength of our business and the strategic partnership we have formed with Fraser Sullivan. Jamestown I also reinforces 3i Group’s objective to grow our debt management business and to generate more third-party income over time.”
3iDM has grown substantially this year. As at 30 September 2012, Debt Management’s total assets under management were £4.4 billion¹ compared to £3.4 billion at 31 March 2012. This demonstrates the strength of our platform and concrete progress against our objective to grow income from third-party assets under management over time.
1 This excludes the recent Jamestown CLO ($450 million AUM) and six CLOs where 3i is seeking investor consent for a transfer of management contracts from WCAS Fraser Sullivan, which would account for £1.5 billion of additional AUM.
Notes to editors
Jamestown CLO I
The transaction has a 4-year reinvestment period and a non-call period of 2 years. The capital structure is as follows:
| Tranche | Size (m) | Coupon | MDY Rating / S&P |
|---|---|---|---|
| Class A-1 Notes | $293.0 | LIBOR + 143 | Aaa/AAA |
| Class A-2 Notes | $40.5 | LIBOR + 235 | /AA |
| Class B Notes | $36.0 | LIBOR + 290 | /A |
| Class C Notes | $18.0 | LIBOR + 400 | /BBB |
| Class D Notes | $24.75 | LIBOR + 550 | /BB |
| Subordinated Notes | $48.95 | N/A | /N/A |
Citigroup served as the Initial Purchaser and Placement Agent.
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.
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 2012 had total AUM of approximately £3.4 billion.
