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Listing at LuxSE
Collaterised Loan Obligations (CLOs)
CLOs are structured portfolios that pool loans to companies or private equity players that wish to make leveraged buyouts. After their repurchase, these loans are securitised and resold in different tranches to investors.
An attractive and innovative legal framework
Luxembourg’s recently amended Securitisation Law offers some key features which are set to transform the country into a leading jurisdiction for CLO structures. These include:
Manage risks
The right for Luxembourg securitisation vehicles to actively manage risks linked to bonds, loans or other debt instruments, to the extent that the securities issued to finance such risks are not offered to the public.
Flexibility
The flexibility of compartmentalisation, including adjustments for equity financings, which remains an integral part of the Securitisation Law.
Wider range of corporate forms
A wider range of corporate forms which can now be used for securitisation, including (i) a general partnership (société en nom collectif), (ii) a common limited partnership (société en commandite simple), (iii) a special limited partnership (société en commandite spéciale) and (iv) a simplified limited company (société par actions simplifiée).
Tax neutrality
The limited recourse concept, which enables the achievement of tax neutrality.
A seamless and efficient listing process
When listing a CLO on our Euro MTF, the Luxembourg Stock Exchange (LuxSE) oversees the entire approval and admission process, guaranteeing a fast review process for direct and indirect prospectus submissions – up to three days for the first review, and in most cases, 24 hours following the submission of the updated draft prospectus.
Our listing team can be contacted directly for preliminary questions, as well as being on hand to support our issuers throughout the listing process. We also offer clear and concise guidelines for securitised products listed on Euro MTF (LuxSE Rules and Regulations - Appendices V and VI).
Our listing team can be contacted directly for preliminary questions, as well as being on hand to support our issuers throughout the listing process. We also offer clear and concise guidelines for securitised products listed on Euro MTF (LuxSE Rules and Regulations - Appendices V and VI).
Competitive listing fees
LuxSE has a dedicated fee schedule for CLO transactions. In order to be eligible, CLOs should feature active management (which includes the buying and selling of the underlying leveraged loans) by a CLO manager, who selects the collateral and manages the underlying portfolios.
This dedicated fee covers the approval, listing and maintenance for all securities included in the single vehicle.
This dedicated fee covers the approval, listing and maintenance for all securities included in the single vehicle.
