Senior Loan Team Raises $1 Billion in 30 Days
Over the past 30 days, the Senior Loan Team has booked 3 transactions that raised over $1 billion in new assets.
• $150 million investment by ING Life of Japan into the ING (L) Flex – Senior Loans SICAV
• $475 million closed-end fund in Canada, the largest such offering this year and the largest ever by our partner, Connor, Clark & Lunn Capital Markets, Inc.
• $409 million CLO underwritten by Credit Suisse
At the end of May, ING Life of Japan invested $150 million in the ING (L) Flex - Senior Loans Luxembourg SICAV. This was the first investment in a newly created Yen-hedged share class. The fund now offers hedged share classes in 5 different currencies in addition to shares in its Euro base currency. Those additional classes are denominated in: USD, YEN, GBP, NOK and SGD. “We are very gratified by the confidence that our affiliate, ING Life of Japan, has shown in our team and our strategy” said Jeff Bakalar, Group Head of the Senior Loan Group. “We are looking forward to building on this success to raise more assets from Asia and Japan in particular.”
On June 17, 2011, ING Floating Rate Senior Loan Fund became the newest listed closed-end fund on the Toronto Stock Exchange. Trading under the symbols ISL-U and ISL-UN, the fund raised over $300 million in equity capital and will be leveraged up to a total of approximately $475 million. As noted above, this was the largest closed-end fund placement in Canada so far this year. “This fund marks our team’s first foray into Canada, and we are delighted to have partnered with Connor, Clark & Lunn to provide Canadian investors a fund with the performance and diversification benefits of the senior loan asset class,” said Dan Norman, Group Head of the Senior Loan Group. “This will be our second listed closed-end fund, along with Prime Rate Trust.”
Finally, on June 22, 2011, the Senior Loan team launched its latest CLO named ING IM CLO 2011-1, Ltd. With a total capital raise of $407 million, this is the ninth CLO managed by the Senior Loans team, making it one of the largest and most successful CLO managers in the country. ING partnered with Credit Suisse to bring this transaction to market, and achieved a very favorable placement, with AAA spreads, for example, at only L+125, one of the most efficient placements in the market today.
“The reopening of channels like closed-end funds and CLOs, together with continued emphasis on institutional and retail funds, gives ING a diversified base for our senior loan business leading toward the IPO” said Mark Weber, Executive Vice President and Head of Investment Solutions for IIM. “The ING Senior Loan Team has developed a broad range of senior loan products for institutional and retail investors, and enjoys an enviable market position that will benefit ING now and in the future.”