Citis Global Transaction Services business has won the mandate to administer a 1.4 billion collateralized loan obligation (CLO) purchased by Intermediate Capital Group (ICG) from RBS.
Citi will act as trustee, paying agent and custodian on the transaction, while Virtus, a fixed-income collateral administrative services and data firm, is collateral administrator. The acquisition was executed in mid-August.
The deal between RBS and ICG is believed to be the first acquisition of a CLO from a bank without vendor financing, according to trade publication Legal Week.
RBS sold 1 billion of European corporate loan last month. According to a statement from the bank: RBS continues to demonstrate progress with its strategic plan. This sale is in line with the group’s strategy to reduce its funded balance sheet and exposure to its existing leveraged loan book within its non-core division.
Pradeep Rao, managing director (Europe) for Virtus, said This transaction, ICG EOS Loan Fund I, is a great opportunity and milestone for Europe and represents a re-opening of the structured arbitrage market.