Ares Management markets $408 million Ares XXXVIII CLO offering

By Cristal Cody

Tupelo, Miss., Nov. 10 – Ares Management LLC plans to price a $408 million collateralized loan obligation offering of notes due Jan. 20, 2027, according to a market source.

The Ares XXXVIII CLO, Ltd./Ares XXXVIII CLO, LLC deal includes $247.5 million of class A senior floating-rate notes (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.

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