Sector developments and company hires

Constellis losses expected
Moody’s warns that, at current prices, Constellis Holdings’ limited default could result in significant losses - realised or unrealised - for some CLOs. Over 200 CLOs the agency rates hold about US$600m of the firm’s debt, including 20 deals that have exposure of over 1% and are expected to report an average par loss of 88bp. Three of these deals are expected to report losses of over 100bp, with the largest CLO exposure standing at 1.6%. Moody’s notes that most CLOs hold the first lien loan - which was recently quoted at 31 - but 9% of CLO exposures are to the second lien loan, which was recently quoted at 6. The agency downgraded Constellis to Ca from B3 last week, due to a missed amortisation payment that was due on 31 December and an anticipated restructuring of the firm’s obligations, either through a consensual agreement with creditors or pre-packaged bankruptcy court proceedings.

Direct access platform
Nuveen is bringing its private equity and junior capital group together with Churchill Asset Management, to create a direct access platform with over US$21bn in committed capital. The combined entity, which will operate as Churchill, manages over 250 portfolio investments and has more than 150 limited partner investments in leading middle market private equity funds. Jason Strife will continue to lead the firm’s junior capital efforts and also serve on the Churchill senior management team. Both the senior lending and private equity and junior capital investment teams will continue to operate with no change to their investment focus or process.

NPL servicer transfer
Oxalis Holding has transferred its role as master servicer in respect of the Pillar Finance non-performing loan ABS to Celidoria. Under the securitisation, Eurobank Ergasias issued €1.04bn class A, €310m class B and €645.4m class C notes due 31 December 2054 (SCI 31 May 2019).