Apollo brings ALME CLO AAAs at Euribor plus 123 bps; CLO issuance hits nearly $126 billion

By Cristal Cody

Tupelo, Miss., Oct. 31 – Apollo Global Management, LLC priced €411.1 million of notes due 2028 in the ALME Loan Funding III Ltd. collateralized loan obligation deal, according to a market source on Friday.

The transaction was upsized from €360 million.

The CLO placed €233.7 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Euribor plus 123 basis points at the top of the capital structure.

The CLO sold €11 million of class F senior secured deferrable notes (B2//B-) at Euribor plus 655 bps at the bottom of the capital stack.

Citigroup Global Markets Inc. was the placement agent.

The proceeds from the offering will be used to invest primarily in euro-denominated leveraged loans and bonds.

Apollo Global Management was previously in the primary market on June 6 with the €382.4 million ALME Loan Funding II Ltd. transaction.

The New York City-based investment management firm priced the €334.23 million ALME Loan Funding 2013-1 Ltd. transaction in 2013.

Closing out October, CLO issuance has climbed to nearly $126 billion from U.S. dollar- and euro-denominated transactions, according to data compiled by Prospect News.

About $108.5 billion of U.S. dollar-denominated CLOs have priced year to date, according to data.

Market analysts forecast about $125 billion of total U.S. CLO issuance for the year.

CLO issuers brought nearly $13 billion of deals in October, Prospect News data shows.

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