Carlyle US CLO 2024-4 Issuing $509.3 Million in Notes Backed by Loan Portfolio of $500 Million

Carlyle US CLO 2024-4 is making waves in the financial world with its issuance of $509.3 million worth of notes backed by a loan portfolio of $500 million. Managed by Carlyle CLO Management, this cash-flow CLO transaction is backed by a portfolio of non-investment-grade broadly syndicated loans and other assets, purchased and traded in the primary and secondary markets.

With $426 billion of assets under management and 95 CLOs in the U.S. and Europe, Carlyle is a major player in the industry. The active management of the CLO, including asset purchasing and selling, is subject to specific criteria and collateral quality tests to ensure portfolio stability.

The international loan portfolio includes a maximum concentration of 20% in the U.S., 15% in Canada, and various percentages in other countries. The top five industries in the loan portfolio make up over half of the total, including banking, finance, insurance, real estate, consumer and business services, healthcare, pharmaceuticals, and high-tech industries.

The issuance includes various classes of notes, with the class A-1 notes receiving an AAA rating from Moody’s. These notes pay a coupon of three-month SOFR plus 1.43% on a quarterly basis. Other classes of notes are not rated, with subordinated notes receiving payments from residual interest and principal proceeds.

Carlyle 2024-4 is following in the footsteps of other successful CLO transactions, with the manager’s earlier transactions passing quality and over-collateralization tests. With a closing date of June 25, 2024, and a legal final maturity of July 20, 2037, this CLO is set to make a significant impact in the financial market.