| Securitisation: AIB readies 4th CLO deal |
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| AIB Capital Markets is to launch its fourth European collateralised loan obligation (CLO) deal, the E350 million Boyne Valley, B.V. |
At closing, Boyne Valley will issue floating-rate and subordinated notes, the proceeds of which, after paying transaction fees and expenses, will be invested in a portfolio of predominantly senior secured leveraged loans. The transaction has a reinvestment period of six years.
The transaction allows up to 30 per cent of the assets to be denominated in a currency other than euros. For these assets to be eligible for inclusion in the portfolio, they must be denominated in U.S. or Canadian dollars, or the currency of a Western European country, which has a long-term foreign currency sovereign rating of at least ‘AA-’.
This is AIB’s fourth CLO, following on from the E400 million Galway Bay BV transaction in 2003, Clare Island BV in 2002 and Tara Hill, a E447 million CDO, in 2001.
The deal further consolidates AIB’s position as one of the largest players in the European leveraged buy-out market. |
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| Article appeared in the November 2005 issue.
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