London Office Advises BNP Paribas on New CDO
LONDON (16 April 2007) — The international law firm of McDermott Will & Emery advised BNP Paribas in connection with its recent €558.6 million CDO of leveraged loans. The deal introduced to the CDO market the use of a variable hedging option strategy to manage the risk arising from investment in a wide range of currencies.
The transaction was arranged by BNP Paribas with Pemba Credit Advisers, a subsidiary of Man Group Plc, the world’s largest hedge fund manager, acting as collateral manager to the CDO. The structure of the deal allowed for investment in a number of major currencies and across the entire spectrum of debt instruments used in the leveraged loan market.
The multi-disciplinary team was led by London structured finance partner Steven Black, assisted by New York corporate partner Michael Pettingill and London structured finance trainee Clare McRoberts. Tax advice was provided by London associate Stuart Sinclair and New York partner John Lutz.
Steven Black said, "The CDO market for leveraged loans is very buoyant and it is a pleasure to work with people who know the market and are seeking all the time to improve the product."
