Newfleet Asset Management, an affiliate of Virtus Investment Partners, Inc. (NASDAQ: VRTS) that manages $10.9 billion of fixed-income assets, today announced the closing of a $356.3 million collateralized loan obligation (CLO).
Newfleet CLO 2016-1 will be backed by a diversified portfolio of broadly syndicated senior secured floating rate loans, with six classes of notes rated by Moody's and S&P and unrated subordinated notes. The CLO will have a two-year non-call and a four-year reinvestment period with a final maturity of 12 years. Newfleet's parent, Virtus, retained 100 percent of the subordinated notes.
David L. Albrycht, CFA, Newfleet's president and chief investment officer, said the successful offering marks the first transaction for Newfleet's CLO platform, which is led by Frank Ossino, senior managing director and lead portfolio manager of the CLO, and Kyle Jennings, senior managing director and head of credit research.
Newfleet's CLO platform, which has approximately $2.2 billion in bank loan assets including Newfleet CLO 2016-1, leverages the manager's infrastructure and its strong bank loan investment capabilities.
"One of our key strategic initiatives is the build-out of a CLO platform that can benefit from our competitive advantages, including our experienced team, well-established bank loan investment capabilities, and access to capital to ensure compliance with risk retention rules," Albrycht said.
"We appreciate the support this offering received from investors, and the partnership Newfleet has with Wells Fargo, which was the arranger for the CLO."
Michael Angerthal, executive vice president and chief financial officer of Virtus, said, "We are pleased that the Newfleet team was able to execute their first CLO transaction despite a challenging environment for new issuances. This transaction, including our $36.3 million investment in subordinated notes, demonstrates Virtus' commitment to utilizing our capital position to facilitate growth for our affiliates."
About Newfleet Asset Management
Newfleet Asset Management, an affiliated manager of Virtus Investment Partners, provides comprehensive fixed income portfolio management, including multi-sector, enhanced core, and core strategies, in addition to dedicated sector strategies such as emerging markets debt, bank loans and high yield. Newfleet leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. In addition to Newfleet Asset Management, its affiliated managers include Duff & Phelps Investment Management, Euclid Advisors, Kayne Anderson Rudnick Investment Management, Kleinwort Benson Investors International, Rampart Investment Management, and Zweig Advisers. Additional information can be found at virtus.com.
