GoldenTree prices $720.25 million with AAAs at Libor plus 133 bps; Apollo refinances CLO

By Cristal Cody

Tupelo, Miss., June 3 – GoldenTree Asset Management LP achieved a tight AAA print of Libor plus 133 basis points in a new CLO offering, while Apollo Credit Management (CLO) LLC refinanced a vintage 2012 deal, according to market sources on Wednesday.

GoldenTree Asset Management priced $720.25 million of notes in 10 tranches in the deal.

Apollo Credit Management refinanced $475 million of notes in its transaction.

In other market activity, Fitch Ratings said in a news release on Wednesday that the prolonged slump in oil prices is affecting the CLO sector.

“The latest batch of new CLOs that have come to market are already taking this concern into account, with structures that do not allow for outsized exposure to any given industry,” Fitch said.

GoldenTree prices CLO

GoldenTree Asset Management priced $720.25 million of notes due July 20, 2028 in the GoldenTree Loan Opportunities X Ltd./GoldenTree Loan Opportunities X, LLC deal, according to a market source.

At the top of the capital structure, GoldenTree Loan Opportunities X sold $4.5 million of class X floating-rate notes at Libor plus 100 bps, $225 million of class A-1 floating-rate notes at Libor plus 133 bps and $195 million of class A-2 floating-rate notes at Libor plus 142 bps.

Morgan Stanley & Co. LLC was the placement agent.

GoldenTree Asset Management will manage the CLO.

The CLO has a three-year non-call period and a five-year reinvestment period.

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

Proceeds from the deal will be used to purchase a portfolio of about $700 million of primarily senior secured leveraged loans.

GoldenTree Asset Management previously brought the $553.05 million GoldenTree Loan Opportunities XI Ltd./GoldenTree Loan Opportunities XI, LLC deal on Feb. 27.

The New York City-based private investment firm priced three CLOs in 2014.

Apollo refinances CLO

Apollo Credit Management refinanced $475 million of notes due July 15, 2026 in a vintage 2012 CLO deal, according to a market source.

ALM VI, Ltd./ALM VI LLC sold $321.5 million of class A-1R senior secured floating-rate notes at Libor plus 143 bps; $51.5 million of class A-2R senior secured floating-rate notes at Libor plus 195 bps; $29.5 million of class B-1R senior secured deferrable floating-rate notes at Libor plus 280 bps; $15 million of 2.8% class B-2R senior secured deferrable fixed-rate notes; $23 million of class C-R senior secured deferrable floating-rate notes at Libor plus 375 bps; $20 million of class D-R secured deferrable floating-rate notes at Libor plus 565 bps and $14.5 million of class E-R secured deferrable floating-rate notes at Libor plus 660 bps.

The original $39 million of subordinated notes will remain in the deal.

Credit Suisse Securities (USA) LLC arranged the refinancing transaction.

Apollo Credit Management is the CLO manager.

The transaction is backed primarily by broadly syndicated senior secured corporate loans.

The CLO is non-callable until July 15, 2017. The reinvestment period ends July 15, 2019.

Proceeds from the offering will be used to redeem the original notes due June 14, 2023 on June 15.

Apollo Credit Management was in the primary market at the start of the year with the $786.2 million ALM XII, Ltd./ALM XII, LLC transaction priced on Jan. 26.

The New York City-based subsidiary of Apollo Global Management, LLC brought two U.S. CLO deals in 2014.

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