Churchill AM Closes $400M Mid-Market CLO
Churchill Asset Management, the investment affiliate of Nuveen (the asset manager of TIAA), closed its middle-market collateralized loan obligation (CLO) at $400 million.
Churchill MMSLF CLO III, the third CLO priced by Churchill in 2023 and the eighth altogether, increased the firm’s CLO assets under management to $3.5 billion. The CLO was created in conjunction with Mubadala Investment Co.’s $1 billion+ co-investment collaboration with Churchill.
The CLO has a four-year reinvestment period and a collateral pool of senior secured loans, approximately 80% of which have been accumulated as of the closing date. Standard & Poor’s rates the CLO’s capital structure as AAA to BB-, with six classes of notes. Mubadala holds most of the CLO’s subordinated notes.
“The CLO market offers a compelling alternative to finance diversified portfolios of middle market leveraged loans and is a natural expansion of our relationship with Churchill,” said Fabrizio Bocciardi, head of credit investments, Mubadala.
The deal expands on $50 billion Churchill’s 17-year track record as a middle market asset manager, said Kelli Marti, Churchill’s head of CLO management in Chicago.
“We look forward to continuing to build on this momentum and already have a robust 2024 pipeline across our CLO platform and broader private capital business,” she added.
Wells Fargo served as the administrative agent and arranger of the transaction.