NEW YORK, Jan. 9, 2007 (PRIME NEWSWIRE) -- Clearwater Capital Partners, LLC, a leading Asia-focused private equity firm, has launched its first Collateralized Loan Obligation (CLO). The offering is a high yield cash flow CDO transaction with a total issuance of US$146 million of securities and backed by a portfolio of distressed corporate loans and high yield bonds. All the underlying assets will be USD denominated and most are domiciled in Asia. Clearwater noted that the offering is the first rated CLO of Asian ex-Japan distressed debt.
Clearwater Capital Partners CLO I Ptd. Ltd., a special purpose company newly incorporated in Singapore, is the investment manager for the offering. Merrill Lynch was the arranger and lead manager.
"We are excited about the launch of this unique offering," said Robert Petty, Managing Partner. "While this is our first CLO, Clearwater has significant workout and distressed credit experience in the Asian ex-Japan market. Going forward, we believe that the Asian credit markets outside of Japan will be a significant source of institutional-quality loan securitizations. This transaction diversifies and deepens the funding options for Clearwater, and we are already working with Merrill Lynch on possible further securitization issues."
"The Asian non-performing loan market presents attractive opportunities for securitization of significant amounts of assets going forward," said Chandrakant Mohanty, Head of Pacific Rim Global Structured Credit Products at Merrill Lynch. "The key to the securitization of these assets will be an appropriate credit enhanced structure combined with a manager, like Clearwater, with a demonstrated track record in investing in, and managing, Asian distressed debt."
About Clearwater Capital Partners
With more than 50 years of collective experience in the Asian credit markets, Clearwater has invested in over 150 situations, building a diverse portfolio of cash-generative assets with downside protection and upside potential across a variety of countries, industries and positions in the capital structure. Clearwater currently manages approximately US$1 billion, and its focus also includes active involvement in helping management teams turn around and grow their businesses. Headquartered in New York, Clearwater has offices in Hong Kong, Seoul, Singapore and Mumbai. Clearwater is currently establishing a sixth location in Beijing.