Cairn Capital Limited yesterday closed Cairn CLO III B.V., its new €300 million CLO and the first-to-market European arbitrage CLO since 2008. In so doing Cairn have set down an important landmark for the re-emergence of the European CLO market. The transaction, which is designed to be compliant with European risk retention requirements, was widely anticipated by the market and the financial media and is the first of several European CLOs expected to close this year.
Milbank advised Cairn Capital in their capacity as collateral manager on the legal structuring of the transaction and with the negotiation of the transaction documents. CLO practitioners in Milbank’s London, New York and Los Angeles offices are also currently working on several other new CLO transactions.
Lead partner James Warbey said “we congratulate Cairn Capital on a successful deal closing and are optimistic that this marks the return of an innovative and highly successful investment product for the European market”.
Partner James Warbey led the Milbank team, which included associates John Goldfinch and Christopher Wall. US securities law and tax support was provided by a range of Milbank London and New York teams including partners Russell Jacobs, Andrew Walker, Eric Moser and Jay Grushkin.
