Marathon Asset Management Closes Marathon CLO 2021-17, the Industry’s First CLO with a SOFR-linked Tranche

Published 3 years ago via Business Wire

CLO raises $430 million in total

Marathon Asset Management (“Marathon”), a leading global credit investment manager, today announced the close of Marathon CLO 2021-17 Ltd. — the first ever U.S. collateralized loan obligation to be originally issued with a tranche linked to the Secured Overnight Financing Rate (“SOFR”). The $24.75 million SOFR-linked tranche was priced at with a spread of 210 basis points over SOFR and rated Aa2 by Moody’s Investor Service.

“Marathon is pleased to build on our role as an innovative leader in credit by being the first manager to utilize the SOFR benchmark in a new issue CLO structure. The transition away from the LIBOR at the end of the year is a pivotal moment for the loan and CLO markets. We believe Marathon CLO 2021-17 plays an important role in the transition process by providing transparency to the market on the pricing basis between LIBOR and SOFR CLO tranches,” said Bruce Richards, Chairman & Chief Executive Officer of Marathon. “We appreciate the robust support from global institutional investors that made this transaction a success. 2021 was Marathon’s most active year as a CLO issuer, with six transactions executed across global capital markets. We look forward to the exciting opportunities ahead for our CLO management platform and broader corporate credit franchise as we build on our position as a capital provider of choice for companies across sectors and geographies.”

Marathon CLO 2021-17 was arranged by Bank of America Securities, Inc.

About Marathon

Marathon Asset Management, L.P. is a New York-based global investment advisor with approximately $23 billion of capital under management. The firm was founded in 1998 by Louis Hanover and Bruce Richards and employs more than 160 professionals globally. Marathon has issued seventeen CLOs, representing $8.3 billion in notional, since the inception of its CLO management platform in 2005. Marathon's corporate headquarters are in New York City, with international offices in London and Tokyo. Marathon is a Registered Investment Adviser with the Securities and Exchange Commission.

For more information, please visit the company's web site at www.marathonfund.com.

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