KopenTech AMR

Refinancing, Simplified.

CLO Refinancing Platform

What is AMR?

AMR, Applicable Margin Reset, is a multi-dealer online
auction that refinances CLO liabilities at a fraction of the
traditional cost and time. AMR does not require issuance
of new securities, thus cutting expenses and time delays.
Compared to single-dealer underwriting, AMR auctions
provide additional liquidity through multi-dealer syndication.

Why is CLO
refinancing important?

While some may think that CLO Managers’ primary job is to
focus on selecting assets, managing CLO liabilities is equally
important for CLO returns. CLO assets are leveraged loans
which are highly callable. Leveraged loan repricing can lead
to uneconomic risk/return outcomes for a CLO. The ability to
adjust the cost of liabilities frequently and economically is
the key to successful CLO management.

Why is CLO
refinancing important?

While some may think that CLO Managers’ primary job is to focus on selecting assets, managing CLO liabilities is equally important for CLO returns. CLO assets are leveraged loans which are highly callable. Leveraged loan repricing can lead to uneconomic risk/return outcomes for a CLO. The ability to adjust the cost of liabilities frequently and economically is the key to successful CLO management.

AMR
Benefits The
Marketplace

Equity investors

lower refinancing costs and acquire the option to refinance debt tranche by tranche

Debt investors

gain broader market access and the ability to place multiple bids at different margins

CLO managers

save time via broad, efficient syndication and obtain insights from auction data

Broker-dealers

secondary desks get access to a formerly primary market

$6.8 Bn

AMR Deals
in the Market

$4.1 Bn

Bids Posted
in AMR Auctions

17

Platform
Broker-dealers

…Buyers of CLO equity may press to use KopenTech’s technology... There were $25 billion of CLO refinancings last year. If all had gone the auction route, equity investors would have saved tens of millions of dollars.

Moody’s Investors Service analyst Peter Hallenbeck, February 2020
AMR Cost

Cost Savings

  • 4 AMRs for the cost
    of 1 traditional refinancing
  • Competitive execution
    through secondary markets
  • Deal documentation
    remains the same

Time Reduction

  • Full timeline is 10 days, with
    only 5 days of pricing risk
  • Financial and operational risks
    reduced through fast execution
AMR Time
AMR Data

Insightful Data

  • Detailed auction data helps
    CLO managers plan issuance
    more effectively
  • Multi-dealer auction format
    yields extensive origination
    insights

AMR Auction Results

View historical data from
past AMR auctions.

AMR Timeline

10 Days From
Initiation to Completion

4d

Initiation

The CLO manager or
majority equity investor(s)
initiates AMR
refinancing after
the
non-call period ends.

1d

Auction

Investors confidentially
submit bids through
a platform broker-dealer.
KopenTech
aggregates,
calculates and publishes
results.

5d

Settlement

Securities are
transferred via DTC to
auction winners.
The
trustee publishes
the
pricing supplement.

AMR on Wiki

Read detailed information about AMR on Wikipedia.

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a better marketplace!

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know more?

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