NEW YORK--(BUSINESS WIRE)--Redding Ridge Asset Management, LLC (together with its subsidiaries, “Redding Ridge” or the “Company”) today announced the closing of its first collateralized loan obligation (“CLO”), a $700 million CLO referred to as RR 1 LTD (“RR 1”). The transaction priced on July 20, 2017 and was underwritten by J.P. Morgan. RR 1 is backed by a portfolio of broadly syndicated loans with a two-year non-call period and a five-year reinvestment period. RR 1 is structured to comply with risk retention requirements in the U.S. and Europe, with Redding Ridge retaining a majority of the CLO’s equity.
Albert Huntington, Redding Ridge’s Head of Capital Markets and Banking said, “We believe the successful closing of RR 1 demonstrates Redding Ridge’s ability to execute CLO transactions that are consistent with the proven capabilities of a top tier manager.”
Steve Riddell, the Chief Investment Officer of the Company commented, “We are very pleased with our first transaction and believe Redding Ridge is well-positioned to establish a leading CLO platform within the new regulatory environment.”
About Redding Ridge Asset Management
Established in 2016, Redding Ridge Asset Management, structured as a Capitalized Manager Vehicle, is a new, independent company established to address risk retention regulations in the global collateralized loan obligation market. Redding Ridge Holdings, LP, the parent to Redding Ridge and a permanent capital vehicle, has received equity investments from Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO), certain funds managed by Apollo and other institutional investors.
Redding Ridge focuses its business on serving as collateral manager of U.S. and European CLO transactions and related warehouse facilities and serving as the holder of retention interests in certain U.S. and European CLOs. In addition, Redding Ridge may acquire risk retention interests in third-party transactions. Redding Ridge has entered into contracts with Apollo to access a number of important Apollo resources within its leading global alternative credit platform including an employee sharing agreement, a credit research agreement and an administrative services agreement. For more information about Redding Ridge, please visit www.rram.com.