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Cairn closes first new European arbitrage CLO

March 25, 2013 at 10:05 am

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Cairn Capital has closed Cairn CLO III BV, its new EUR300m CLO and the first-to-market European arbitrage CLO since 2008.

The transaction, which is designed to be compliant with European risk retention requirements, is the first of several European CLOs expected to close this year.

Milbank advised Cairn Capital in its 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 says: “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.”

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.