Eldridge prices $820M Cedar Crest 2026-2 CLO backed by senior secured loans
What's the deal? Eldridge Structured Credit Advisers has brought Cedar Crest 2026-2 LLC to market, an $820 million revolving cash flow collateralized loan obligation (CLO). The vehicle issues five rated note classes backed by an $811.0 million portfolio of corporate loans, mainly middle market and broadly syndicated senior secured debt.
How it's structured: The notes revolve and can be drawn and repaid on a pro rata basis to buy additional collateral or fund commitments tied to existing revolving loans. Once the reinvestment period ends, principal proceeds flow sequentially to repay the rated notes.
The ratings: Kroll Bond Rating Agency assigned ratings reflecting initial credit enhancement, excess spread, and coverage tests, including overcollateralization and interest coverage ratios. Its assessments on the Class A and B notes consider timely interest and ultimate principal payment; the Class C, D, and E ratings consider ultimate payment of both by maturity.
The portfolio: The pool spans 152 obligors, giving the CLO diversification across a broad group of borrowers. KBRA puts its K-WARF at 3,400, a weighted average credit assessment of about B-, and flags a high expected allocation to Variable Funding Collateral Obligations.
The signal: The deal underscores continuing issuance in structured credit tied to senior secured corporate loans. It follows KBRA's recent review of the $425 million Stone Point Credit MM CLO 2025-2, which carried no defaulted assets and a stronger K-WARF of 2,979.
Read more: tradersunion.com
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