View our Security Policies. Cairn Capital Close Landmark CLO Transaction U.S. Bank Global Corporate Trust Services has been appointed by London-based Cairn Capital Limited on a new EUR 300.5m collateralised loan obligation (CLO). The transaction represents Europe's first leveraged loan arbitrage CLO issued since the onset of the global financial pre-crisis and has been structured and arranged by Credit Suisse Securities Limited (Europe) with Cairn Capital acting as collateral manager. "Our appointment on this transaction highlights our experience in the leverage loan space and our ability to assist existing clients on new structures," said Tom Cubitt, Head of Corporate Trust- Europe. "I am delighted that the deal has been met with investor interest and look forward to supporting new CLO deals when they return to the market." U.S. Bank serves as collateral administrator, principal paying agent, note and security trustee, account bank, calculation agent, and agent bank and registrar. The global corporate trust business of U.S. Bank, which ranked No. 2 trustee in the U.S. CLO market in 2012, administers a large and active European CLO portfolio. Availability and prices of leveraged loans together with spreads on senior liabilities have previously proved a road block to new issuance, squeezing down the equity returns needed to attract investors. Cairn Capital have taken advantage of tightening senior spreads, allowing them to secure investment on the equity tranches. Cairn CLO III has 3 Senior Debt Tranches and 2 Junior Equity Tranches, of which Cairn Capital is required to hold a 5% portion as part of the Capital Requirements Directive requirement - Article 122a. To increase marketability Cairn together with Credit Suisse incorporated changes within the prospectus to provide noteholders with greater protection and flexibility than pre-crises CLOs. This surrounds aspects such as asset restructuring, noteholder redemptions and changes to the reinvestment criteria – a move towards new "CLO 2.0" documentation. A number of new European CLO deals are in the pipeline for 2013 and U.S. Bank Global Corporate Trust Services continue to invest in supporting collateral managers and investors as the market returns. Interested in learning more about U.S. Bank Global Corporate Trust Services? Visit us online at usbank.com/corporatetrust.