Citigroup Global Markets in Securitization of Subordinated Loans to Community Banks

Cleary Gottlieb represented Citigroup Global Markets as initial purchaser in the $205 million Community Funding CLO transaction. This transaction is believed to be the first securitization of subordinated community bank debt to occur since the financial crisis. The transaction priced on September 30 and closed on October 15, 2015.

Assets securitized in the transaction were originated by StoneCastle. A separate Cleary team represented StoneCastle in connection with the structuring and negotiation of the loans and subordinated debt obligations that became assets of the CLO.