By Cristal Cody
Tupelo, Miss., Aug. 3 – Additional details emerged for Ares Management LLC’s new $813.6 million collateralized loan obligation issuance.
Ares XXXIV CLO Ltd./Ares XXXIV CLO LLC sold $495 million of class A senior floating-rate notes (Aaa/AAA) at par with a spread of Libor plus 141 basis points and $103.1 million of class B senior floating-rate notes (Aa1) at par with a spread of Libor plus 220 bps in the senior tranches.
The CLO priced $63.9 million of class C mezzanine deferrable floating-rate notes (A2) at par with a spread of Libor plus 320 bps; $42 million of class D mezzanine deferrable floating-rate notes (Baa3) at par with a spread of Libor plus 420 bps; $11.5 million of class E-1 mezzanine deferrable floating-rate notes (Ba3) at par with a spread of Libor plus 650 bps; $20.5 million of class E-2 mezzanine deferrable floating-rate notes (Ba3) at 92 with a spread of Libor plus 520 bps; $11.9 million of class F mezzanine deferrable floating-rate notes (B2) at 88 with a spread of Libor plus 650 bps and $65.7 million of subordinated notes.
Barclays was the placement agent.
Ares CLO Management LLC, an affiliate of Ares Management, will manage the CLO.
The CLO is non-callable until July 29, 2017. The reinvestment period ends July 29, 2019.
The notes are due July 29, 2026.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Ares Management has been in the primary market with two new CLOs and one refinancing of a vintage CLO in 2015.
The Los Angeles-based alternative asset management firm brought three CLO deals in 2014.
| Issuer: | Ares XXXIV CLO Ltd./Ares XXXIV CLO LLC
|
| Amount: | $813.6 million
|
| Maturity: | July 29, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Barclays
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | July 29, 2017
|
| Pricing date: | July 29
|
| Settlement date: | Aug. 27
|
|
|
| Class A notes
|
| Amount: | $495 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 141 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B notes
|
| Amount: | $103.1 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa1
|
|
|
| Class C notes
|
| Amount: | $63.9 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $42 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 420 bps
|
| Price: | Par
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E-1 notes
|
| Amount: | $11.5 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Price: | Par
|
| Rating: | Moody’s: Ba3
|
|
|
| Class E-2 notes
|
| Amount: | $20.5 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Price: | 92
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $11.9 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Price: | 88
|
| Rating: | Moody’s: B2
|
|
|
| Equity
|
| Amount: | $65.7 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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