Update on Kartesia CLO strategy
Kartesia is pleased to announce the successful reset of the Eurogalaxy III CLO managed by PineBridge Investments Europe Limited (Pinebridge) - one of the very first transaction of its kind in Europe. Given the majority stake in the Subordinated Notes that KCO III acquired in March 2016, Kartesia actively participated in that process, alongside arranger JP Morgan and Pinebridge. That transaction consisted amongst other in a refinancing of the liabilities of the vehicles at a lower cost, thus benefitting from the current market conditions, while extending the maturity of the vehicle and setting new headroom for investment to the vehicle. Following the reset, KCO III added an investment on the vehicle’s newly issued B-rated Notes.
Also on the CLO side, Kartesia sold its subordinated notes in Sorrento Park CLO at an IRR in excess of 60% and reinvested the capital in the subordinated notes of Griffith Park CLO, a GSO Blackstone-managed vehicle, as the expected equity returns of this new vehicle surpass those that we could have expected on Sorrento Park.