Calling All CLOs

Roughly $150 billion of CLO deals will eventually need to vote on changes to become Volcker compliant, but this process is a pain since it is often difficult to find all of the equity or controlling class holders — enter Dealvector. We have been instrumental in assembling voting blocks for several CLOs already. If you are dreading calling around the market to pull your votes together, give us a call instead.

CLO 1.0 deals will likely be retired by the time Volcker deadlines hit. Meanwhile, the CLOs launched after the guidelines came out were made compliant from the get-go. This leaves a variety of CLO 2.0 vintages (roughly 2009 to 2013) that are in the strike zone for amendment.

Becoming compliant typically can mean amending the docs to remove the manager’s ability to invest in bonds. This will usually entail obtaining a majority of the votes of both the equity and senior noteholder classes. That’s a lot of calling around! Send a message on DealVector, and let us do the calling for you. You have better things to do with your time!