Redding Ridge Asset Management plans $1.55 billion refinanced, renamed CLO offering

By Cristal Cody

Tupelo, Miss., Jan. 17 – Redding Ridge Asset Management, LLC plans to price $1,552,350,000 of notes due Jan. 15, 2030 in the firm’s third collateralized loan obligation transaction, according to a market source.

The RR 3 Ltd./RR 3 LLC transaction is expected to include $916 million of class A-1-R2 floating-rate notes (AAA); $155 million of class A-2-R2 floating-rate notes; $150 million of class B-R2 floating-rate notes; $75 million of class C-R2 floating-rate notes; $68 million of class D-R2 floating-rate notes and $188.35 million of preferred shares.

BNP Paribas Securities Corp. is the placement agent.

Redding Ridge will manage the CLO.

The deal is a refinancing and reset of the ALM XIV, Ltd. transaction that was originally priced and managed by Apollo Credit Management (CLO) LLC.

Apollo Credit Management refinanced $1,177,160,000 of notes from the vintage 2014 CLO on April 5, 2017.

ALM XIV Ltd. sold $930 million of class A-1-R floating-rate notes at par to yield Libor plus 115 bps, $163.23 million of class A-2-R floating-rate notes at par to yield Libor plus 155 bps and $83.93 million of class B-R floating-rate notes at par to yield Libor plus 210 bps.

In the original transaction priced on June 6, 2014, ALM XIV sold $930 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps; $163,225,000 of class A-2 senior secured floating-rate notes at Libor plus 210 bps; $83,925,000 of class B senior secured deferrable floating-rate notes at Libor plus 295 bps; $107.5 million of class C senior secured deferrable floating-rate notes at Libor plus 345 bps; $100.1 million of class D secured deferrable floating-rate notes at Libor plus 485 bps and $157.35 million of preferred shares.

The reset RR 3 CLO will have a two-year non-call period and a five-year reinvestment period.

The notes are collateralized primarily by broadly syndicated first-lien senior secured loans.

Proceeds will be used to redeem the refinanced CLO notes on Jan. 29.

Redding Ridge Asset Management priced two CLOs in 2017.

The New York City-based asset management company was established in 2016 by Apollo Global Management, LLC.

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