ALM VII to issue $120 million loan, redeem A-1b notes on Feb. 11

By Angela McDaniels

Tacoma, Wash., Jan. 25 – ALM VII, Ltd. and ALM VII, LLC plan to refinance their class A-1b notes, according to a notice.

The issuers will issue a $120 million class A-1b loan due January 2026 and use the proceeds to redeem the class A-1b notes.

The interest rate on the loan (Aaa//AAA) will be Libor minus 165 basis points. Interest will not be deferrable.

The loan will rank pari passu to the class A-1a notes issued in the collateralized loan obligation.

The redemption of the class A-1b notes will take place Feb. 11.

The redemption price will be $120,166,745.33, or 100% of the outstanding amount of notes plus accrued interest.

No other class of notes nor the preferred shares issued in the CLO will be redeemed.

The redemption is being carried out at the direction of the collateral manager, Apollo Credit Management (CLO), LLC.

Consent solicitation

Before the redemption can happen, changes must be made to the indenture governing the CLO in order to permit the issuers to issue the replacement securities in the form of a class A-1b loan.

As a result, the issuers are soliciting consents from the holders of the preferred shares. Consents are needed from the holders of a majority of the preferreds.

Holders have until Feb. 11 to submit consents.

The consent solicitation record date is Jan. 21, and the redemption date record date is Jan. 27.

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