April 29, 2015

BNY Mellon appointed trustee and principal paying agent for Commerzbank's first European CLO

BNY Mellon acted on more than a quarter of European CLOs in 2014

LONDON, April 29, 2015 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has been appointed trustee and paying agent for Bosphorus CLO I Limited. It is Commerzbank's first European CLO and is being managed by the bank's Debt Fund Management division.

The €233.4 million collateralised loan obligation (CLO) will securitise a portfolio of senior secured loans and bonds granted to European companies. Sterne Agee & Leach, Inc. is acting as arranger and also making its debut in the European CLO market.

CLO issuance in Europe in 2014 reached €14.29 billion, which was double the issuance of the previous year1. BNY Mellon acted as either paying agent or trustee on more than a quarter of the 34 CLOs that were issued in the region2.

"This deal demonstrates our continued partnership with clients on innovative solutions in this rapidly rebounding market," said Dean Fletcher, Head of Corporate Trust EMEA at BNY Mellon. "This is Europe's first static CLO3 since the financial crisis, which provides investors with an alternative to actively managed vehicles by offering a combination of yield, asset quality and reduced management costs. The tight spread reflects investors' enthusiasm for the offering. The senior tranche of Bosphorus CLO I Limited is priced at 115 basis points above Euro Interbank Offered Rate, which is one of the tightest spreads in the European CLO market."

BNY Mellon will also act as custodian, account bank, information agent, calculation agent, registrar and transfer agent to Bosphorus CLO I Limited.

Notes to editors:

As of March 31, 2015, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 60,000 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.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.

This press release is issued by The Bank of New York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise stated as at March 31, 2015.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square, London E14 5AL. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

1 Creditflux
2 Creditflux
3 This means there is no reinvestment or discretionary trading permitted in the CLO after the deal closes. However the portfolio manager may identify and dispose of credit-impaired and defaulted assets.

Malcolm Borthwick
+44 20 7163 4109