By Cristal Cody
Tupelo, Miss., May 22 – Ares Management LLC priced $479.7 million of notes due April 15, 2031 in a new collateralized loan obligation offering that closed Thursday, according to market sources.
Ares LV CLO Ltd./Ares LV CLO LLC sold $287.5 million of class A-1 senior floating-rate notes at Libor plus 170 basis points, $10 million of class A-2 senior floating-rate notes at Libor plus 190 bps and $66 million of class B senior floating-rate notes at Libor plus 250 bps.
The CLO priced $30 million of class C mezzanine deferrable floating-rate notes at Libor plus 340 bps, $30.5 million of class D mezzanine deferrable floating-rate notes at Libor plus 483 bps, $19 million of class E mezzanine deferrable floating-rate notes at Libor plus 620 bps and $36.7 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Ares CLO Management LLC will manage the CLO.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is backed primarily by broadly syndicated senior secured corporate loans.
Ares Management is a Los Angeles-based alternative asset management firm.
| Issuer: | Ares LV CLO Ltd./Ares LV CLO LLC
|
| Amount: | $479.7 million
|
| Maturity: | April 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | One year
|
| Settlement date: | May 21
|
|
|
| Class A-1 notes
|
| Amount: | $287.5 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $10 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class B notes
|
| Amount: | $66 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $30.5 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 483 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $19 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 620 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $36.7 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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