By Cristal Cody
Tupelo, Miss., Oct. 22 – Ares Management LLC sold $707 million of collateralized loan obligation notes and loans due Oct. 15, 2026, according to details from a market source.
Ares XXXVII CLO, Ltd./Ares XXXVII CLO, LLC priced $433.3 million of class A-1 senior floating-rate notes at Libor plus 146 basis points, $45.2 million of class A-2 senior floating-rate notes at Libor plus 220 bps and $50 million of class A-2 loans at Libor plus 220 bps.
The CLO sold $45.5 million of class B mezzanine deferrable floating-rate notes at Libor plus 310 bps; $37.1 million of class C mezzanine deferrable floating-rate notes at Libor plus 425 bps; $18.3 million of class D-1 mezzanine deferrable floating-rate notes at Libor plus 680 bps; $16 million of class D-2 mezzanine deferrable floating-rate notes at Libor plus 702 bps and $12.6 million of class E mezzanine deferrable floating-rate notes at Libor plus 750 bps.
The deal included $49 million of subordinated notes as equity.
Goldman Sachs & Co. was the placement agent.
Ares CLO Management XXXVII LLC will manage the CLO.
The CLO is non-callable until Oct. 15, 2017. The reinvestment period ends Oct. 15, 2019.
The transaction is backed primarily by broadly syndicated senior secured corporate loans.
Ares Management has brought to market four new CLO transactions and one refinanced deal year to date.
The Los Angeles-based alternative asset management firm priced three CLOs in 2014.
| Issuer: | Ares XXXVII CLO, Ltd./Ares XXXVII CLO, LLC
|
| Amount: | $707 million
|
| Maturity: | Oct. 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Ares CLO Management XXXVII LLC
|
| Call feature: | Oct. 15, 2017
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 30
|
|
|
| Class A-1 notes
|
| Amount: | $433.3 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 146 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $45.2 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class A-2 loans
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| Amount: | $50 million
|
| Securities: | Loans
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $45.5 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $37.1 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-1 notes
|
| Amount: | $18.3 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 680 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class D-2 notes
|
| Amount: | $16 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 702 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class E notes
|
| Amount: | $12.6 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 750 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $49 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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