Mountain Point Credit Management LLC (“Mountain Point”), a systematic credit manager, today announced that Mountain Point CLO 1 Ltd (“Mountain Point CLO 1”), a $500 million new issue U.S. collateralized loan obligation (“CLO”), has closed and gone effective. Bank of America served as arranger.
Mountain Point CLO 1 invests in a highly diversified portfolio of nearly 1,000 broadly syndicated senior secured loans, providing investors with exposure to more borrowers than traditional CLOs. The transaction saw broad investor demand across the capital structure, with the AAA tranche pricing at SOFR +123 basis points.
“We’re pleased with the reception from a diverse group of institutional investors for our inaugural CLO,” said Kelly Byrne, Founder and CEO of Mountain Point. “We believe the demand reflects strong investor interest in Mountain Point’s innovative approach to the leveraged loan market. Our strategy applies an algorithm-driven process to portfolio construction, with the goal of delivering consistent results and reducing bias. We look forward to building on this momentum as we scale the platform.”
Traditionally, the CLO space has relied on credit analyst research covering a subset of the loan market. Mountain Point’s data-driven approach allows the manager to evaluate the full universe of U.S. broadly syndicated loans. With visibility into more than 1,000 issuers, this broader opportunity set enables a more diversified, rules-based portfolio construction process and helps mitigate idiosyncratic credit risk.
About Mountain Point Credit
Mountain Point is a systematic credit manager that currently manages nearly $2 billion in AUM. Its proprietary loan investment platform prioritizes data-driven analytics and rules-based decision making to deliver highly diversified and efficient access to the U.S. broadly syndicated loan market. Mountain Point was founded by Kelly Byrne in partnership with Eagle Point Credit Management.
For additional information, please visit mountainpointcredit.com.
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