Crestline Investors, Inc., an institutional alternative investment management firm, announced the closing of a $409.44 million collateralized loan obligation (CLO), known as Crestline Denali CLO XV, Ltd., by its Crestline Denali Capital unit.

The CLO will be backed by a portfolio of primarily senior-secured leveraged loans and will have an approximately five-year reinvestment period and a two-year non-call period. This is the first CLO to be sponsored by Crestline in 2017. In 2016, the firm sponsored two CLOs – the $361.0 million Crestline Denali CLO XIV, Ltd. and the $358.8 million Denali Capital CLO XII, Ltd. The transaction is structured to comply with both U.S. and European risk retention requirements.

David Killion, Chief Executive Officer of Crestline Denali Capital, said: “The successful closing of CLO XV is proof of the continued growth of our global investor base and further affirms the benefits of the Crestline Investors’ platform and our ability to structure transactions that can meet the ongoing regulatory changes of our industry.”

“With risk retention rules now the standard across both the United States and Europe, the success of this transaction shows that we are well positioned to pursue new issuances that meet current regulatory demands,” said Douglas Bratton, Managing Partner & CIO of Crestline.

Natixis Securities America LLC acted as the arranger for the CLO.