American Money Management taps market, prices AAAs at 135 bps spread; CLO issuance strong

By Cristal Cody

Tupelo, Miss., April 17 – In new CLO primary action, American Money Management Corp. priced a $510.8 million deal, according to a market source on Friday.

American Money Management sold nine tranches of fixed-rate, floating-rate and subordinated notes, including a slice of amortizing floating-rate notes.

Barclays analysts said in a report on Friday that “CLO issuance remains robust, with $6.1 [billion] already printing this month to bring the 2015 total to $36.4 [billion].”

American Money Management priced $510.8 million of notes due April 14, 2027 in the AMMC CLO 16, Ltd./AMMC CLO 16, Corp. transaction, according to a market source.

The CLO sold $6 million of class A-X amortizing senior secured floating-rate notes at Libor plus 135 basis points in the senior tranche.

Jefferies LLC arranged the transaction.

American Money Management will manage the CLO.

The CLO is non-callable until April 14, 2017. The reinvestment period ends April 14, 2019.

The offering is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.

Cincinnati-based American Money Management, a subsidiary of insurance holding company American Financial Group, Inc., priced two CLO transactions in 2014.

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