By Cristal Cody
Tupelo, Miss., July 20 – Apollo Credit Management (CLO) LLC brought a $1,111,850,000 collateralized loan obligation deal, according to a market source.
ALM XVI, Ltd./ALM XVI LLC sold $715 million of class A-1 senior secured floating-rate notes at Libor plus 146 basis points and $112.2 million of class A-2 senior secured floating-rate notes at Libor plus 220 bps at the top of the capital structure.
The CLO also priced $59.4 million of class B senior secured deferrable floating-rate notes at Libor plus 290 bps; $60.15 million of class C-1 senior secured deferrable floating-rate notes at Libor plus 350 bps; $13 million of class C-2 senior secured deferrable floating-rate notes at Libor plus 410 bps; $52.25 million of class D secured deferrable floating-rate notes at Libor plus 535 bps; $11 million of class E secured deferrable floating-rate notes at Libor plus 675 bps and $88.85 million of preferred shares in the equity tranche.
J.P. Morgan Securities LLC was the deal arranger.
Apollo Credit Management is the CLO manager.
The notes are due July 15, 2027.
The CLO has a two-year non-call period and a four-year reinvestment period.
The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase assets to reach a target portfolio of about $1.1 billion of mainly senior secured leveraged loans.
Apollo Credit Management previously priced the $786.2 million ALM XII, Ltd./ALM XII, LLC CLO on Jan. 26 and refinanced $475 million of notes in the ALM VI, Ltd./ALM VI LLC deal on June 3.
The New York City-based subsidiary of Apollo Global Management, LLC brought two U.S. CLO deals in 2014.
| Issuer: | ALM XVI, Ltd./ALM XVI LLC
|
| Amount: | $1,111,850,000
|
| Maturity: | July 15, 2027
|
| Securities: | Floating-rate notes and preferred shares
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | Apollo Credit Management (CLO) LLC
|
| Call feature: | 2017
|
| Pricing date: | July 15
|
| Settlement date: | Aug. 20
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $715 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 146 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $112.2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $59.4 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Ratings: | Moody’s: A2
|
|
|
| Class C-1 notes
|
| Amount: | $60.15 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class C-2 notes
|
| Amount: | $13 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $52.25 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 535 bps
|
| Ratings: | Moody’s: Ba3
|
|
|
| Class E notes
|
| Amount: | $11 million
|
| Securities: | Secured deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Ratings: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $88.85 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
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