Pair of CLOs Include Some Second Liens

A pair of recent collateralized-debt obligation transactions from separate issuers include some second liens among their more than $700 million in holdings.

The first transaction, Symphony CLO 34-PS Ltd./Symphony CLO 34-PS LLC, is a $394.80 million broadly syndicated CLO managed by Symphony Alternative Asset Management LLC. It’s the second transaction this year for Symphony Alternative.

According to S&P Global Ratings, which issued a presale report on July 25, “second-lien and unsecured loans” can account for up to 10 percent of the total CLO.

Atlas Static Senior Loan Fund is the second transaction. Moody’s announced Wednesday that it assigned ratings to five classes for $360 million.

“Atlas Static Fund I is a static cash flow CLO that includes the ability to substitute up to 7.5 percent of the aggregate principal amount of the collateral obligations in the portfolio between the closing date and the effective date,” Moody’s stated. “The issued notes will be collateralized primarily by broadly syndicated senior secured corporate loans.”

Crescent Capital Group LP is the manager of the CLO.

Moody’s noted that up to 10.0 percent of the portfolio can consist of second-lien loans, senior secured bonds and unsecured loans.