BNY Mellon is largest corporate trust provider globally for CLOs and CDOs
BNY Mellon, the global leader in investment management and investment services, has been appointed trustee and portfolio administrator on Avoca Capital CLO X Limited, a €311 million collateralised loan obligation (CLO).
The facility is managed by Avoca Capital and arranged by Credit Suisse. Avoca Capital and BNY Mellon have worked together on a number of previous deals which include managed accounts, a CLO and a private equity structure.
BNY Mellon was the largest corporate trust provider by deal count for CLOs and collateralized debt obligations (CDOs) issued worldwide in the first nine months of this year - acting on 47 of the 156 deals to market .
"The European CLO market has recovered this year, for the first time since the financial crisis", said Dean Fletcher, Head of EMEA Corporate Trust, BNY Mellon. "This is due to a convergence of factors: bond buying from central banks is providing more liquidity; record low interest rates are forcing investors to seek out higher yields; and the tightening of CLO spreads is making arbitrage more attractive. The senior tranche of Avoca Capital CLO X Limited is priced at 140 basis points above the Euro Interbank Offered Rate, which is one of the tightest spreads in the European CLO market."
Joe Duffy, Country Executive for BNY Mellon in Ireland added: "This deal is testament to the strength of the Irish financial industry. Avoca Capital, which is a Dublin-based company, is at the forefront of the re-emergence of the CLO market in Europe. Through our Irish operations, BNY Mellon offers a comprehensive range of services to support such transactions."
BNY Mellon will also act as custodian, account bank, cash manager, paying agent, transfer agent and registrar, corporate services provider, warehouse administration agent and ECB reporting agent for Avoca Capital CLO X Limited.
BNY Mellon is a key participant in Ireland's financial markets and opened its first office in Ireland in 1994. It currently employs 1,800 employees in Ireland located in Cork, Wexford and Dublin, and offers a broad range of services to traditional and alternative asset managers, banks, pension funds, insurance companies and corporates. In Ireland, BNY Mellon offers a range of services including asset servicing, alternative investment services, depositary receipts and corporate trust. Pershing, a subsidiary of BNY Mellon, also has a presence in Ireland.
As of September 30, 2013, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 67,000 debt-related issues globally. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
 CDO/CLO Market Share includes all issuance in all markets BNY Mellon actively participates and for which reliable Trustee and/or Paying Agent data is available. This data is based on Asset Backed Alert information and may be included in Global Market Share tables as "Structured Finance" as well.