Arrowpoint prices CLO AAAs at Libor plus 175 bps; American Capital talks of more deals

By Cristal Cody

Tupelo, Miss., July 9 – Arrowpoint Asset Management LLC brought a $150 million offering of collateralized loan obligation notes, according to a market source on Wednesday.

The CLO priced $72.15 million of class A floating-rate notes (/AAA/) at Libor plus 175 basis points.

The Denver-based investment advisor arm of Meridian Funds was last in the primary market in February with the $460.25 million Arrowpoint CLO 2014-2 Ltd./Arrowpoint CLO 2014-2 Corp. deal.

More than $73.3 billion of CLOs have priced in the U.S. and European markets year to date, according to data compiled by Prospect News.

In other CLO market activity, American Capital, Ltd. announced on Wednesday that affiliate ACAS CLO 2014-1, Ltd. closed on the previously reported June 6 sale of $618.75 million of CLO bonds.

“We are pleased to announce the closing of our fifth CLO under management,” Mark Pelletier, president of American Capital CLO Management and president of American Capital Senior Floating, Ltd., said in the release.

“With this new CLO, the leveraged finance group now manages approximately $4 billion of assets, including publicly traded American Capital Senior Floating, Ltd.,” he said. “CLO investors are very focused on manager performance, and we believe our track record will help us raise additional CLOs.”

ACAS CLO 2014-1 priced $374 million of class A floating-rate notes (Aaa/AAA/) at Libor plus 151 bps at the top of the capital structure and $13 million class F floating-rate notes (B2) at Libor plus 590 bps at the bottom of the stack.

The deal included $51.75 million of subordinated notes in the equity tranche.

ACAS CLO 2014-1 is managed by American Capital CLO Management, LLC, a subsidiary of American Capital Asset Management, LLC, which is a wholly owned portfolio company of American Capital.

American Capital CLO Management purchased $31 million of the subordinated notes, with third-party investors purchasing the remaining $20.75 million, according to the release.

The retention of a control equity investment by American Capital CLO Management is intended to make ACAS CLO 2014-1 compliant with risk retention rules in Europe, the firm said.

ACAS CLO 2014-1 has invested the proceeds from the deal primarily in broadly syndicated senior secured loans purchased in the primary and secondary markets.

Bethesda, Md.-based private equity firm American Capital priced two CLO transactions in 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.