Babson Capital Named Replacement Manager For 2 Loan CDOs
Springfield -- 01/27/2010 --
Babson Capital Management LLC (“Babson Capital”), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., said today it has been selected by the controlling class of investors to serve as successor collateral manager of two collateralized debt obligations (CDOs) previously managed by Tricadia Loan Management LLC.
Under the terms of the amended management agreement, Tricadia CDO 2005-4 Ltd., with $250 million in assets, is renamed Ashford CDO I Ltd., and Tricadia CDO 2006-6 Ltd., with $330 million in assets, is renamed Ashford CDO II Ltd.
“We’re delighted to have been selected by the investors to assume management of these CDOs,” said Matthew Natcharian, Managing Director and Head of the Structured Credit Team at Babson Capital. “Including the assumption of the Tricadia portfolios, Babson Capital has been named replacement manager for 16 CDOs and collateralized loan obligations (CLOs) worth more than $4.7 billion since 2003, which speaks to our global leadership in structured-credit investing and our track record of success over many market cycles.”
Babson Capital was rated No. 1 in the list of top U.S. CLO managers as of Dec. 31, 2009, according to a ranking recently released by Standard & Poor’s Ratings Services1. Babson Capital leads the list of the 21 largest CLO managers with 29 CLOs, loan CDO of CDOs and CLO market-value transactions. Ashford CDO I and II are technically loan CDOs of CDOs, which means the underlying assets backing the CDO are loans aggregated in CLOs.
In addition to the recent S&P ranking, Babson Capital has previously been recognized as a leading manager of CDOs and was named a top manager in 2007 by Euromoney magazine and in 2007 and 2008 by Creditflux magazine2. The firm created its first structured fund in 1991 and now manages 55 CDOs totaling $20.4 billion in structured credit assets as of Dec. 31, 2009.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $128.9 billion in assets under management as of June 30, 2010. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, and Cornerstone Real Estate Advisers LLC in Hartford, Conn. Babson Capital is a member of the MassMutual Financial Group.
1 - Standard & Poor's Ratings Services compiled a list of the 21 largest U.S. collateralized loan obligation (CLO) managers, based on the number of Standard & Poor's rated U.S. cash flow CLO, collateralized debt obligation (CDO) of CDO (loans), and market value CLO transactions outstanding as of Dec. 31, 2009.
2 – Euromoney named Babson Capital “Best CDO Borrower 2007” in the June 2007 issue. Creditflux selected Babson Capital “Best Cash CDO Manager” in September 2007 and 2008 based on a review of performance data submitted by investment managers. A full list of 2007 and 2008 award recipients is available at www.creditflux.com.