Latest Trimaran Advisors News
Feb 20, 2020
June 28 The deal will be sold by Trimaran Advisors, the CLO firm LibreMax bought in November 2018. Opaque borrowers of leveraged loans including private-equity firms have been slow to take up the ESG guidelines embraced by public issuers. Sellers of leveraged loans only selectively disclose financial information; in the past they’ve even asserted control over who buys their debt through blacklists in the U.S and so-called white lists in Europe. The lack of accepted ESG standards and loans that meet the criteria has been cited as another obstacle holding back this kind of securitization. Earlier this month the main trade body for the $1.2 trillion industry in the U.S. developed an ESG survey that companies can fill out when seeking financing, though it will be voluntary and they won’t need to keep the disclosure up to date. Jonathan Butler, head of European leveraged finance at PGIM Fixed Income, says it’s just a matter of time before the market joins the ESG boom. “Scrutiny is building and I feel like leveraged finance is quickly catching up with other parts of the market,” said Butler, whose team uses its own ESG rating system to pick investments. The leveraged loans in LibreMax’s CLO will come from companies that derive 50% or more of their revenue from ESG-compliant industries. Excluded will be borrowers that get the bulk of earnings from oil and gas extraction, trading in protected wildlife and gambling. Loan issuers will also be screened for governance best practices, including diversity of board members.