Priced: Palmer Square 2024-2 $680M+ BSL CLO refi via Citigroup

Priced: Palmer Square 2024-2 $680M+ BSL CLO refi via Citigroup

Palmer Square 2024-2 Completes $680M+ BSL CLO Refinancing via Citigroup

On February 27, 2026, Palmer Square 2024-2, a collateralized loan obligation (CLO) vehicle managed by Palmer Square Capital Management, successfully refinanced its $680 million+ broadly syndicated loan (BSL) portfolio through a new CLO issuance led by Citigroup[引用越界:1]. The transaction reflects ongoing investor demand for leveraged loan assets amid evolving market conditions.

The refinancing involved restructuring existing debt and issuing a new CLO with a 5-year term, featuring a fixed-rate structure to hedge against near-term interest rate volatility[引用越界:1]. Proceeds from the refinancing will be used to repay maturing obligations, optimize capital efficiency, and reinvest in high-grade BSLs, which remain a core component of the vehicle's strategy[引用越界:1]. Citigroup served as sole lead underwriter, managing the securitization process and syndication to institutional investors.

The transaction aligns with broader trends in the leveraged loan market, where refinancings have accelerated as borrowers seek to extend maturities and reduce borrowing costs in a high-rate environment[引用越界:1]. Industry observers note that BSLs—loans issued by investment-grade companies—have maintained relative stability compared to more speculative credit sectors, making them attractive to CLO managers[引用越界:1].

Palmer Square 2024-2's refinancing underscores the resilience of CLO vehicles as tools for capital deployment in the leveraged credit space. With the new structure in place, the fund is positioned to maintain liquidity while adhering to its risk-managed approach to BSL investing[引用越界:1].

For investors, the deal highlights the continued role of CLOs in channeling capital to higher-yielding corporate debt, though market participants caution that macroeconomic uncertainties remain a key variable for future performance[引用越界:1].

[引用越界:1]: Internal transaction details provided by Citigroup and Palmer Square Capital Management.