
Carlyle Group is marketing a new European CLO with an unusual structure that allows the manager to pay themselves fees before conducting a test that could force them to use interest to repay bondholders. In a rating agency presale report for Carlyle Euro CLO 2025-2, the subordinated fee is shown as senior to the overcollateralisation test in the waterfall, a reversal of the typical order.
This content is part of Octus’ expanded CLO Insights.
File | The-Carlyle-Tweaks-European-CLO-Payment-Waterfall-27Jun25.pdf |
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