Tetragon Financial Group has closed its transaction with Calyon New York to acquire Lyon Capital Management and approximately $39 million in collateralized loan obligation securities.
Tetragon Financial Group Ltd. (“TFG”) has closed a deal with Calyon New York Branch (“Calyon”) to acquire Lyon Capital Management LLC (“LCM”), which will be renamed LCM Asset Management LLC, and $39 million in collateral loan obligation securities (“CLO securities”). TFG paid a $10 million purchase price to Calyon, and in return received all management fees earned by LCM and cash flows received from the CLO securities from August 16, 2009 through closing, less certain expenses.
LCM is an asset manager that has approximately $2.5 billion of loan assets under management, all of which is spread across six active CLOs. TFG has stated that it will be leaving the entire LCM management team as it existed before the acquisition. Additionally, LCM will be entering into a joint venture with Polygon Management LP (“Polygon”). Polygon, which is an affiliate of new owner TFG, will purchase a 25% equity interest in LCM.
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