Babson Capital Assumes Management of 5
Jefferies CLOs, Pushing High Yield Assets to
Nearly $20 Billion
l Jefferies Capital Management funds of $1.7 billion raise Babson Capital’s total high yield assets
under management to nearly $20 billion
March 08, 2010 05:03 AM Eastern Time
SPRINGFIELD, Mass.--(EON: Enhanced Online News)--Babson Capital Management LLC (“Babson Capital”),
an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced the
closing of five collateralized loan obligations (CLOs) with more than $1.7 billion under management. Included in the
transaction are Victoria Falls CLO Ltd., Diamond Lake CLO Ltd., Clear Lake CLO Ltd., Summit Lake CLO Ltd.,
and St. James River CLO Ltd.
The transaction, completed Jan. 29, raises Babson Capital’s total of high yield assets under management – which
includes bank loans and high-yield bonds in a variety of accounts and funds – to $19.3 billion.
Babson Capital assumed the role of replacement collateral manager of the CLOs, whose underlying collateral
consists primarily of bank loans, from Jefferies Capital Management, Inc., a subsidiary of Jefferies Group, Inc.
(NYSE:JEF). As part of the transaction, three Jefferies Capital Management employees directly involved with the
five funds join Babson Capital: Mark Senkpiel as portfolio manager for the funds and a managing director, Kimberly
Atkinson as a director, and Alyssa Tabora as an associate director.
“We are honored to have Jefferies Capital and other investors across the CLOs choose to place their confidence in
Babson Capital," said Russell Morrison, a managing director and head of high-yield investments for Babson Capital.
“We believe this transaction is a win for all parties involved.”
Jefferies Group, Inc., Babson Capital and Massachusetts Mutual Life Insurance Company (MassMutual) maintain an
active strategic relationship, including their joint ownership of Jefferies Finance LLC, an originator of middle market