ALM VIII postposes plan to issue loan, redeem A-1b notes by two weeks

By Wendy Van Sickle

Columbus, Ohio, Feb. 5 – ALM VIII, Ltd. and ALM VIII, LLC pushed back its proposed refinancing of its class A-1b notes and postponed its plan to redeem the notes to Feb. 25 from on Feb. 11, according to two notices.

The issuers still plan to 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 plus a spread of less than 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 price for the class A-1b notes will be $120,272,856, 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

As under the previous refinancing plans, 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 5 p.m. ET on Feb. 24 to submit consents.

The consent solicitation record date is Feb. 3, and the redemption date record date is Feb 10.

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