Apollo prices $477 million CLO with AAAs at Libor plus 147 bps; market activity quiet

By Cristal Cody

Tupelo, Miss., April 8 – A new deal from Apollo ST Fund Management LLC brings year-to-date U.S. CLO issuance to more than $31 billion, according to market sources and Prospect News data on Wednesday.

Apollo ST Fund Management sold $476,975,000 of notes in the CLO offering.

Market activity remained quiet as the month kicks off following a strong deal pipeline in March, sources report.

Apollo prices $477 million

Apollo ST Fund Management sold $476,975,000 of notes due April 15, 2027 in a CLO offering, according to a market source.

Apollo Credit Funding IV Ltd./Apollo Credit Funding IV LLC priced $298.5 million of class A-1 senior secured floating-rate notes at Libor plus 147 basis points at the top of the capital structure.

Mizuho Securities USA Inc. arranged the offering.

Apollo ST Fund Management will manage the CLO.

The CLO has a non-call period that ends Oct. 15, 2016. The reinvestment period ends Oct. 15, 2019.

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

Proceeds from the deal will be used to purchase a portfolio of about $466.5 million of leveraged loans.

Apollo ST Fund Management is a New York-based investment firm.

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