BNY Mellon’s role in a first of its kind CLO transaction known as Applicable Margin Reset Structural (AMR) was announced today by MUFG Securities Americas (MUFG)
NEW YORK, August 28, 2017 – The AMR structure provides a mechanism for repricing a CLO using an auction rate method. It has an automatic refinancing feature, which allows investors to bid in the auction without the need to create new securities.
BNY Mellon was appointed trustee, collateral administrator, paying agent, registrar on the CLO and BNY Mellon Capital Markets will act as AMR agent for the transaction. BNY Mellon is the first and only institution to successfully implement this hybrid structure.
Frank La Salla, CEO, BNY Mellon Corporate Trust, said, “our ability to bring our trustee and capital markets services together as a unified solution enabled seamless execution of the AMR feature. We are very proud to be the first CLO Trustee/AMR Agent to market with this hybrid structure and look forward to being appointed on many more.”