Apollo International plans €341.3 million second reprint of 2014 ALME Loan Funding II CLO

By Cristal Cody

Tupelo, Miss., Nov. 27 – Apollo Management International LLP plans to price €341.3 million of new notes in a second refinancing of a vintage 2014 euro-denominated collateralized loan obligation transaction, according to a market source and issuer notice on Wednesday.

ALME Loan Funding II DAC also intends to extend the non-call period, reinvestment period and maturity date.

The deal includes €234 million of class A-R senior secured floating-rate notes (Aaa), €23.8 million of class B-1-R senior secured floating-rate notes (Aa2), €14.1 million of class B-2-R senior secured fixed-rate notes (Aa2), €24.4 million of class C-R senior secured deferrable floating-rate notes (A2), €23.6 million of class D-R senior secured deferrable floating-rate notes (Baa3) and €20.6 million of class E-R senior secured deferrable floating-rate notes (Ba3).

Goldman Sachs International is the refinancing agent.

The CLO was first refinanced in a €337.4 million transaction on Dec. 20, 2016. The CLO had sold €1.5 million of class X-R senior secured floating-rate notes at Euribor plus 85 basis points; €224 million of class A-R senior secured floating-rate notes at Euribor plus 100 bps; €50.7 million of class B-R senior secured floating-rate notes at Euribor plus 160 bps; €20.4 million of class C-R senior secured deferrable floating-rate notes at Euribor plus 235 bps; €19.2 million of class D-R senior secured deferrable floating-rate notes at Euribor plus 365 bps and €21.6 million of class E-R senior secured deferrable floating-rate notes at Euribor plus 623 bps.

In that offering, the maturity was extended to Jan. 15, 2030 from the original Jan. 15, 2027 due date.

ALME Loan Funding II was originally issued as a €382.4 million offering on July 9, 2014.

The initial CLO priced €223.5 million of class A floating-rate notes at Euribor plus 135 bps; €40.8 million of class B floating-rate notes at Euribor plus 195 bps; €20.6 million of class C floating-rate notes at Euribor plus 255 bps; €23.3 million of class D floating-rate notes at Euribor plus 340 bps; €25.9 million of class E floating-rate notes at Euribor plus 505 bps; €11.3 million of class F floating-rate notes at Euribor plus 580 bps and €37 million of subordinated notes.

Proceeds from the second refinancing will be used to redeem the outstanding tranches on Dec. 19. The €45 million of participating term certificates in the equity tranche will remain outstanding.

The CLO is predominantly backed by senior secured obligations.

Apollo Management is an investment firm based in London.

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