CLO deal pipeline grows; Ares preps fifth CLO; American Money markets second deal of year

By Cristal Cody

Tupelo, Miss., Nov. 10 – The CLO deal pipeline is beginning to see steady action with two more transactions expected to price soon, according to market sources on Tuesday.

Ares Management LLC plans to price a $408 million CLO, its fifth new CLO offering year to date.

Also on the calendar, American Money Management Corp. intends to bring to market its second CLO deal of the year, a $357.3 million transaction.

Ares offers $408 million

Ares Management plans to price $408 million of notes due Jan. 20, 2027 in the Ares XXXVIII CLO, Ltd./Ares XXXVIII CLO, LLC deal, according to a market source.

The offering includes $247.5 million of class A senior floating-rate notes (Aaa/AAA/); $30 million of class B-1 senior floating-rate notes (Aa2); $24.5 million of class B-2 senior fixed-rate notes (Aa2); $27 million of class C mezzanine deferrable floating-rate notes (A2); $21 million of class D mezzanine deferrable floating-rate notes (Baa3); $19 million of class E mezzanine deferrable floating-rate notes (Ba3) and $39 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

Ares CLO Management II LLC will manage the CLO.

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

The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans and eligible investments.

Ares Management previously was in the primary market on Sept. 30 with the $707 million Ares XXXVII CLO, Ltd./Ares XXXVII CLO, LLC deal. Ares Management has priced four new CLOs and one refinanced CLO year to date.

The Los Angeles-based alternative asset management firm brought to market three CLO offerings in 2014.

American Money in pipeline

American Money Management is organizing a $357.3 million offering of notes due Nov. 15, 2027 in the AMMC CLO 17, Ltd./AMMC CLO 17, LLC transaction, according to a market source.

The deal includes $225.75 million of class A floating-rate notes (/AAA); $41 million of class B floating-rate notes (/AA); $23.75 million of class C deferrable floating-rate notes (/A); $14 million of class D deferrable floating-rate notes; $17.25 million of class E deferrable floating-rate notes (/BB) and $35.55 million of subordinated notes.

Mitsubishi UFJ Securities (USA) Inc. is the placement agent.

American Money Management will manage the CLO.

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

The offering is backed primarily by broadly syndicated senior secured loans.

American Money Management has priced one CLO offering year to date.

The Cincinnati-based subsidiary of insurance holding company American Financial Group, Inc. priced two CLO transactions in 2014.

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