By Rebecca Melvin
New York, Jan. 22 – Ares Management LLC priced $507.05 million of notes due April 15, 2031 in the new Ares LI CLO Ltd./Ares LI CLO LLC transaction, according to a market source.
The CLO primarily consists of broadly syndicated senior secured corporate loans.
The Rule 144A and Regulation S deal includes $295 million of class A-1 senior secured floating-rate notes (Aaa/AAA) to yield Libor plus 130 basis points; $30 million of class A-2 senior secured floating-rate notes (Aaa/non-rated) to yield Libor plus 170 bps; $47.25 million of class B senior floating-rate notes (non-rated/AA) to yield Libor plus 195 bps; $33 million of class C mezzanine deferrable floating-rate notes (non-rated/A) to yield Libor plus 300 bps; $28.75 million of class D mezzanine deferrable floating-rate notes (non-rated/BBB-) to yield Libor plus 400 bps; $22.25 of class E mezzanine deferrable floating-rate notes (Ba3/non-rated) that were not yet priced and $50.8 million of subordinated notes.
BNP Paribas Securities Corp. is the placement agent.
Ares CLO Management LLC will be the CLO manager.
The CLO has a two-year non-call period and a five-year reinvestment period.
The offering is expected to close on March 7.
Ares Management is an alternative asset management firm based in Los Angeles.
| Issuer: | Ares LI CLO Ltd./Ares LI CLO LLC
|
| Amount: | $507.05 million
|
| Maturity: | April 15, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | Two years
|
| Pricing date: | Jan. 18
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $295 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 130 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $30 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $47.25 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $33 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $28.75 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $22.25 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | To be determined
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
|
|
| Equity
|
| Amount: | $50.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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