AXA prices €362.3 million; Apollo refinances CLO; Loomis, Sayles returns to deal market

By Cristal Cody

Tupelo, Miss., Aug. 3 – Details emerged on new transactions from AXA Investment Managers, Inc., Ares XXXIV CLO Ltd./Ares XXXIV CLO LLC and Apollo Credit Management (CLO) LLC, while one pre-financial crisis CLO manager plans to a bring a new deal, according to market sources.

AXA Investment Managers brought a €362.3 million CLO in a private placement offering.

Ares Management priced $813.6 million of notes in a CLO deal.

In refinancing activity, Apollo Credit Management (CLO) refinanced $437.5 million of notes from a vintage 2012 CLO deal.

The U.S. CLO market was mostly quiet over July in primary and secondary activity, according to a J.P. Morgan Securities LLC market note.

“U.S. secondary BWIC volumes in July to last Friday were only 35% of the $5 billion in average monthly volume for the first 6 months of the year,” the note said.

August deal activity is expected to be busier with several CLO transactions in the pipeline.

Loomis, Sayles & Co., LP, which was last in the CLO primary market in 2006, is marketing a $413.75 million offering.

AXA Investment prices

AXA Investment Managers priced €362.3 million of notes due Oct. 15, 2029 in a CLO deal, according to a market source.

Adagio IV CLO Ltd. priced €200.5 million of class A1 senior secured floating-rate notes (Aaa//AAA) at Euribor plus 135 basis points at the top of the capital structure.

J.P. Morgan Securities plc arranged the transaction.

AXA Investment Managers will manage the CLO.

The CLO is backed primarily by senior secured loans and secured senior bonds.

Proceeds from the deal will be used to purchase a €350 million portfolio of mostly European leveraged loans and bonds.

AXA Investment Managers was last in the primary market in April with the $414 million Allegro CLO III Ltd./Allegro CLO III LLC transaction.

The asset management firm, a subsidiary of Paris-based AXA Group, brought one CLO deal in 2014.

Ares places $813.6 million

Ares Management sold $813.6 million of notes due July 29, 2026 in a CLO offering via Barclays, according to a market source.

Ares XXXIV CLO Ltd./Ares XXXIV CLO LLC sold $495 million of class A senior floating-rate notes (Aaa/AAA) at par with a spread of Libor plus 141 bps and $103.1 million of class B senior floating-rate notes (Aa1) at par with a spread of Libor plus 220 bps in the senior tranches.

Ares CLO Management LLC, an affiliate of Ares Management, will manage the CLO.

The CLO is non-callable until July 29, 2017. The reinvestment period ends July 29, 2019.

The deal is backed primarily by broadly syndicated senior secured corporate loans.

Ares Management has been in the primary market with two new CLOs and one refinancing of a vintage CLO in 2015.

The Los Angeles-based alternative asset management firm brought three CLO deals in 2014.

Apollo refinances

Apollo Credit Management (CLO) refinanced $437.5 million of replacement notes in a vintage 2012 CLO deal, according to a market source.

ALM V, Ltd./ALM V LLC priced $301.5 million of class A-1-R2 senior secured floating-rate notes at Libor plus 142 bps at the top of the capital stack.

Mitsubishi UFJ Securities (USA) Inc. was the refinancing agent.

Apollo Credit Management is the CLO manager.

The new notes have a maturity of Oct. 18, 2027.

The non-call period ends Oct. 18, 2017. The reinvestment period ends Oct. 18, 2019.

The refinancing is the second refinancing date of all the secured notes issued on Feb. 23, 2012 and on Feb. 13, 2014.

The transaction is backed primarily by broadly syndicated senior secured corporate loans.

Proceeds will be used to refinance the original classes of notes on Aug. 13.

Apollo Credit Management previously was in the primary market with the $1,111,850,000 ALM XVI, Ltd./ALM XVI LLC deal on July 15. The firm has priced two new CLOs and refinanced two vintage CLOs year to date.

The New York City-based subsidiary of Apollo Global Management, LLC brought two U.S. CLO deals in 2014.

Loomis Sayles in pipeline

Loomis, Sayles & Co. is offering $413.75 million of notes due 2027 in a Rule 144A-eligible CLO deal, according to a market source.

The Loomis Sayles CLO II, Ltd./Loomis Sayles CLO II, LLC transaction includes $254 million of class A-1 floating-rate notes (//AAA); $50.4 million of class A-2 floating-rate notes; $18.5 million of class B floating-rate notes; $25.1 million of class C floating-rate notes; $20 million of class D floating-rate notes and $45.75 million of preferred shares.

J.P. Morgan Securities is the placement agent.

Loomis, Sayles & Co. will manage the CLO.

The CLO has a two-year non-call period and a four-year reinvestment period.

The transaction is backed mainly by first-lien senior secured corporate loans.

The CLO will use the proceeds from the deal to purchase a portfolio of about $400 million of leveraged loans.

Loomis, Sayles & Co. was last in the CLO primary market in 2006 with the Loomis Sayles CLO I, Ltd. transaction.

The investment management firm is based in Boston.

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