Canyon Partners has closed a $500m (£375.3m) collateralised loan obligation (CLO), marking its first issue of the year.

The vehicle, named Canyon CLO 2026-1, is one of the firm’s 28 active CLOs. The majority of the equity was funded by Canyon’s fourth CLO equity fund, which closed earlier this year with more than $400m in commitments.

“The structure of this deal reflects our platform’s flexibility to be nimble and capitalise on shorter-term dislocations, particularly in an environment marked by elevated volatility,” said Erik Miller, partner and co-head of Canyon’s CLO business.

According to Canyon, the transaction achieved a weighted-average cost of debt of S+154, with a triple-A tranche spread of S+120. The CLO was arranged by Citigroup Global Markets and has a non-call period of two years and a reinvestment period of five years.

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Canyon is a global alternative investment manager with $30bn of assets under management. Since launching its first CLO strategy in 2001, the firm has issued and managed 35 CLOs and collateralised debt obligations globally.

“This deal highlights the continued support from our debt investor base and the deep trust we have built with our partners,” added Martin Downen, partner and co-head of Canyon’s CLO business. “Building on a strong year of activity across the platform in 2025, we remain committed to launching and managing high-quality CLOs by leveraging our experience alongside thoughtful portfolio construction and execution.”

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