CLOs often start with a warehouse phase in which the manager accumulates the intial portolio. The manager or another investor stumps up the initial investment which is then leveraged with debt funding, usually from the arranger.
The pricing date is the day orders for the CLO are finalised and the arranger allocates the CLO liabilities to different investors.
Closing date is the day the CLO comes into legal existence and interest on the notes starts to accrue. It is usually around four weeks after the pricing date. The effective date is the point at which the manager declares that the CLO is fully ramped up, and the CLO coverage tests start to apply.
The reinvestment period lasts from the effective date until some pre-determined date in future, often four years after the closing date. After the reinvestment period, the manager stops making new investments, or is only able to make certain purchases.
CLOs rarely run until their legal maturity. Equity investors usually call the CLO several years earlier, meaning that the notes are repaid and the deal comes to an end.