Apidos CLO IX plans to refinance six classes of notes with new notes

By Toni Weeks

San Luis Obispo, Calif., March 19 – Apidos CLO IX and Apidos CLO IX LLC plan to redeem six series of notes on April 15 by issuing new notes, according to a notice.

The affected five “rated” notes series and their aggregate redemption prices, which consist of the principal amount of notes plus accrued interest to the redemption date, are as follows:

• $267,375,000 of class A notes to be redeemed at $268,480,127.72;

• $37.9 million of class B notes to be redeemed at $38,146,662.68;

• $26.65 million of class C notes to be redeemed at $26,916,719.86;

• $21.5 million of class D notes to be redeemed at $21,782,364.88; and

• $17.4 million of class E notes to be redeemed at $17,693,768.55.

The companies are also redeeming a sixth class of notes – their combination securities – at an amount per each combination security equal to its allocation of the redemption price of each underlying class.

The record date will be April 14 for global securities and March 31 for certificated securities.

The refinancing will not occur if a majority of the company’s subordinated notes objects within 10 business days of the proposed refinancing. Holders of subordinated notes may notify the trustee in writing of their objections by 5 p.m. ET on March 30. The subordinated notes are not being redeemed.

The companies are also making modifications to the indenture governing the notes to allow the issuers to qualify for the “loan securitization exemption” from the definition of “covered fund” under the Volcker Rule (section 13 of the Bank Holding Company Act of 1956, as amended).

The consent of noteholders of the rated notes is not being sought in connection with the supplemental indenture, as it will only be executed if the refinancing occurs.

Because the notes will not remain outstanding after the execution date of the supplemental indenture, the issuers have determined that the notes will not be materially and adversely affected. However, the company will seek consents of the holders of its subordinated notes.

The company will issue new notes to refinance the old notes. The new notes have the following principal amounts, expected Standard & Poor’s ratings and coupons and will all mature in July 2023:

• $267,375,000 of class A-R senior secured floating-rate notes (AAA) with a coupon of Libor plus 140 basis points;

• $37.9 million of class B-R senior secured floating-rate notes (AA) with a coupon of Libor plus 235 bps;

• $26.65 million of class C-R senior secured deferrable floating-rate notes (A) with a coupon of Libor plus 375 bps;

• $21.5 million of class D-R senior secured deferrable floating-rate notes (BBB) with a coupon of Libor plus 500 bps; and

• $17.4 million of class E-R senior secured deferrable floating-rate notes (BB) with a coupon of Libor plus 650 bps.

The first four series of new notes will be issued by both issuers. The class E-R notes will be issued only by Apidos CLO IX.

Bank of New York Mellon Trust Co., NA is the trustee.

Questions may be directed to Credit Suisse Securities (USA) LLC (ib-gcp-clo-dea-tea@credit-suisse.com).

Apidos CLO IX and Apidos CLO IX LLC are based in Grand Cayman, Cayman Islands, and Newark, respectively.

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