By Cristal Cody
Tupelo, Miss., July 26 - Additional pricing details emerged for Ares Management Ltd.'s €310.5 million collateralized loan obligation offering of five tranches of notes due Oct. 15, 2025, according to informed sources on Friday.
Ares European CLO VI Ltd. sold €177 million of the class A senior secured floating-rate notes (Aaa/AAA/) at three-month Euribor plus 125 basis points and €28 million of class B senior secured floating-rate notes (/AA/) at three-month Euribor plus 175 bps.
Lower in the capital structure, Ares priced €25 million of class C senior secured deferrable floating-rate notes (/A/) at three-month Euribor plus 275 bps, €15.5 million of class D senior secured deferrable floating-rate notes (/BBB/) at three-month Euribor plus 390 bps and €19 million of class E senior secured deferrable floating-rate notes (/BB/) at three-month Euribor plus 450 bps.
The sale included €46 million of subordinated notes.
Credit Suisse Securities (Europe) Ltd. was the underwriter.
Ares Management will hold 5% of the subordinated notes to meet the European risk retention requirement under Article 122a.
The CLO has a non-callable period that ends in October 2015 and a reinvestment period that ends in October 2017.
The notes are backed by euro-denominated senior secured loans and bonds to broadly syndicated corporate borrowers.
The deal is expected to close on Sept. 3.
| Issuer: | Ares European CLO VI Ltd.
|
| Amount: | €310.5 million
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| Maturity: | Oct. 15, 2025
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| Securities: | Floating-rate and subordinated notes
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| Structure: | Cash flow CLO
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| Placement agent: Credit Suisse Securities (Europe) Ltd.
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| Manager: | Ares Management Ltd.
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| Call feature: | October 2015
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| Pricing date: | July 17
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| Settlement date: | Sept. 3
|
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|
|
|
| Class A notes
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| Amount: | €177 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Three-month Euribor plus 125 bps
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
|
|
| Class B notes
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| Amount: | €28 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Three-month Euribor plus 175 bps
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| Ratings: | Standard & Poor's: AA
|
|
|
| Class C notes
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| Amount: | €25 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Three-month Euribor plus 275 bps
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| Ratings: | Standard & Poor's: A
|
|
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| Class D notes
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| Amount: | €15.5 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Three-month Euribor plus 390 bps
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| Ratings: | Standard & Poor's: BBB
|
|
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| Class E notes
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| Amount: | €19 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Three-month Euribor plus 450 bps
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| Ratings: | Standard & Poor's: BB
|
|
|
| Equity tranche
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| Amount: | €46 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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