By Cristal Cody
Tupelo, Miss., July 31 – Ares Management LLC sold $1.26 billion of notes due Aug. 28, 2025 in a collateralized loan obligation deal, according to an informed source on Thursday.
Ares XXXI CLO Ltd./Ares XXXI CLO LLC priced $759 million of class A-1 senior floating-rate notes (Aaa/AAA/AAA) at Libor plus 144 basis points.
The CLO sold $136.9 million of class A-2 senior floating-rate notes (Aa2//AA) at Libor plus 195 bps; $75.7 million of 5.49% class B deferrable fixed-rate notes (//A); $46.25 million of 6.6% class C deferrable fixed-rate notes (//BBB); $57.5 million of 8.7% class D deferrable fixed-rate notes (//BB) and $184.45 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Ares CLO Management XXXI, LP will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is secured mainly by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a portfolio of about $1.25 billion of primarily senior secured leveraged loans.
Ares was most recently in the U.S. primary market on May 8 with the $360.76 million Ares XXX CLO Ltd. transaction.
The alternative asset management firm is based in Los Angeles.
| Issuer: | Ares XXXI CLO Ltd./Ares XXXI CLO LLC
|
| Amount: | $1.26 billion
|
| Maturity: | Aug. 28, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Ares CLO Management XXXI, LP
|
| Call feature: | 2016
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 28
|
|
|
| Class A-1 notes
|
| Amount: | $759 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 144 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $136.9 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class B notes
|
| Amount: | $75.7 million
|
| Securities: | Deferrable fixed-rate notes
|
| Coupon: | 5.49%
|
| Rating: | Fitch: A
|
|
|
| Class C notes
|
| Amount: | $46.25 million
|
| Securities: | Deferrable fixed-rate notes
|
| Coupon: | 6.6%
|
| Rating: | Fitch: BBB
|
|
|
| Class D notes
|
| Amount: | $57.5 million
|
| Securities: | Deferrable fixed-rate notes
|
| Coupon: | 8.7%
|
| Rating: | Fitch: BB
|
|
|
| Equity tranche
|
| Amount: | $184.45 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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