By Cristal Cody
Eureka Springs, Ark., Sept. 19 – Ares Management LP priced $707 million of notes due Oct. 15, 2027 in the Ares XL CLO Ltd./Ares XL CLO LLC collateralized loan obligation offering, according to market sources.
The CLO sold $424.9 million of class A-1 senior floating-rate notes (Aaa/AAA/) at Libor plus 143 basis points, $30.1 million of class A-2 senior floating-rate notes (Aaa//) at Libor plus 165 bps and $75.6 million of class A-3 senior floating-rate notes (Aa2//) at Libor plus 185 bps.
The CLO placed $37.8 million of class B mezzanine deferrable floating-rate notes (A2//) at Libor plus 240 bps, $42 million of class C mezzanine deferrable floating-rate notes (Baa3//) at Libor plus 370 bps, $33.6 million of class D mezzanine deferrable floating-rate notes (Ba3//) at Libor plus 660 bps and $63 million of subordinated notes.
The deal was upsized by $100 million.
Goldman Sachs & Co. was the placement agent.
Ares CLO Management II LLC will manage the CLO.
The CLO has a two-year non-call period and a five-year reinvestment period.
The transaction is collateralized mostly by U.S. and Canadian first-lien senior secured corporate loans.
Ares Management has priced two new CLO deals and refinanced one vintage CLO year to date.
The Los Angeles-based alternative asset management firm priced five CLOs and refinanced one vintage CLO in 2015.
| Issuer: | Ares XL CLO Ltd./Ares XL CLO LLC
|
| Amount: | $707 million
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Ares CLO Management II LLC
|
| Call feature: | Two years
|
| Pricing date: | Sept. 13
|
| Settlement date: | Oct. 25
|
|
|
| Class A-1 notes
|
| Amount: | $424.9 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 143 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $30.1 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-3 notes
|
| Amount: | $75.6 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $37.8 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $42 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $33.6 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 660 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $63 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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