Ares prices $1.26 billion; Apollo brings CLO; BlueMountain preps deal; AAAs ‘hanging’ firm

By Cristal Cody

Tupelo, Miss., July 31 – CLO issuance is expected to remain strong in August, though the extra supply may prevent spreads from tightening much further, according to a market source on Thursday.

The month closed out with new issuance from Ares Management LLC and Apollo Credit Management (CLO) LLC, sources said.

Ares Management sold $1.26 billion of notes in the Ares XXXI CLO Ltd./Ares XXXI CLO LLC transaction, according to an informed source.

The CLO priced the AAA-rated notes at Libor plus 144 basis points.

J.P. Morgan Securities LLC was the placement agent.

The deal is the U.S. CLO market’s fourth $1 billion-plus transaction year to date.

In other primary action, Apollo Credit Management (CLO) LLC sold $563 million of notes in the ALM XI, Ltd./ALM XI, LLC deal on Thursday, according to an informed source.

The CLO priced $348.75 million of class A-1 floating-rate notes at Libor plus 143 bps in the offering via Credit Suisse Securities (USA) LLC.

Looking ahead, BlueMountain Capital Management LLC intends to bring its third CLO offering of the year, according to an informed source.

The deal is still in the early stages, the source said.

Citigroup Global Markets Inc. is the placement agent.

BlueMountain, a New York City-based private investment firm, priced a $513.23 million CLO offering in March and a $554.75 million deal in June.

More than $7 billion of CLO transactions are in the pipeline, according to a market source.

© 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.