Gide London has advised Crédit Industriel et Commercial SA (CIC Paris) as a senior noteholder and as co-collateral manager in EURO-GALAXY IV CLO B.V., a new €335.1 million Collateralized Loan Obligation (CLO) transaction. PineBridge Investments Europe Limited acted as lead collateral manager in this new CLO under which several different classes of notes have been listed on the Irish Stock Exchange and rated by Standard and Poor’s and Moody’s.
The EURO-GALAXY IV B.V. CLO was the first in the European market to use an innovative co-sponsor risk retention method in which the requirements of the Capital Requirements Regulation (575/2013/EU) were complied with jointly between the co-collateral manager and the lead collateral manager. The CLO was also structured to comply with US regulation including the Dodd-Frank Wall Street Reform and Consumer Protection Act including the Volcker Rule. Issuance volumes in the European CLO market are increasing following a record year of global issuances in 2014 led mainly by new CLOs in the US market. The EURO-GALAXY IV B.V. CLO was upsized from an initial planned issuance of €314.2 million amid strong investor demand and should position CIC Paris well as it seeks to continue its activity in the market.
Gide London had previously advised CIC Paris and Crédit Industriel et Commercial, London Branch (CIC London) in August 2014 in respect of their participation in a warehouse financing for the warehouse stage of this CLO. The transaction was led by partner Dimitrios Logizidis with assistance from counsel William Oliver and associates Christine Rada and Alexander Tompkins and the London tax team led by partner David Klass. Partners Chris Mead and Sara Verkest advised as to US regulatory and US tax matters respectively.