Canyon Partners Expands European CLO Platform with €400 Million Deal

The transaction, Canyon Euro CLO 2026-1, marks the firm's first new European issue this year and its fifth active vehicle in the region. Arranged by BNP Paribas, the deal features a 1.5-year non-call period and a 4.7-year reinvestment window. It was specifically structured to align with European risk retention mandates, securing a weighted-average cost of debt of E+182, with the triple-A tranche priced at E+130 basis points.

Erik Miller, partner and co-head of the firm’s CLO business, attributed the competitive pricing to disciplined portfolio construction and long-standing investor relationships. The equity portion of the deal is primarily funded by Canyon CLO Fund IV L.P., which recently secured over $400 million in commitments. Canyon, which currently manages approximately $12.6 billion across its global CLO platform, has issued 36 CLOs and CDOs since entering the strategy in 2001.