Apollo’s ALM CLO spread data emerges as May issuance slowdown continues after April flurry

By Rebecca Melvin

New York, May 13 – Apollo Credit Management (CLO) LLC priced a collateralized loan obligation this past week for $473.35 million of notes due July 2028 at spreads that were notably tight. Deal volume overall remains light following a busy April, market sources said.

Apollo’s ALM XIX, Ltd./ALM XIX LLC sold $308.75 million of class A-1 floating-rate notes at Libor plus 155 basis points at the top of the capital structure. The CLO also included $49.4 million of class A-2 floating-rate notes at Libor plus 220 bps, $24.7 million of class B floating-rate notes at Libor plus 300 bps, $30.4 million of class C floating-rate notes at Libor plus 435 bps, $23.75 million of class D notes at Libor plus 735 bps and a $36.35 million tranche of preferred stock.

Citigroup Global Markets Inc. arranged the transaction.

Going forward, spreads are expected to retain a tighter bias, but within a reduced range.

There had been strong technical support for CLO mezz and equity as well as for loans, and CLO valuations were attractive to other assets.

Net proceeds from the ALM XIX issuance of the secured and preferred shares will be used to purchase a portfolio of about $475 million of primarily senior secured leveraged loans.

Apollo Credit Management, a New York City-based subsidiary of Apollo Global Management, LLC, priced one other new CLO and refinanced one vintage CLO so far in 2016.

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