Apollo brings $604.8 million ALM XVII CLO; Palmer Square Capital taps year-end market

By Cristal Cody

Tupelo, Miss., Jan. 4 – Two CLO managers tapped the U.S. primary market as 2015 came to a close.

Apollo Credit Management (CLO) LLC priced $604.8 million of notes in its fourth new transaction of the year.

Also, Palmer Square Capital Management LLC brought to market the Palmer Square Loan Funding 2016-1, Ltd./Palmer Square Loan Funding 2016-1 LLC deal. The CLO offering was expected to include $200.24 million of notes due Jan. 21, 2024 in five tranches. J.P. Morgan Securities, LLC was the placement agent. Final pricing details were not available by press time.

CLO managers priced more than $110 billion of CLOs in 2015, coming in as the second strongest year on record behind the $124 billion of supply printed in 2014, according to market sources and Prospect News data.

Apollo Credit Management priced $604.8 million of notes due Jan. 15, 2028 in the 10-tranche ALM XVII, Ltd./ALM XVII LLC deal, which included floating-rate, fixed-rate and fixed-to-floating rate notes, according to a market source.

The CLO sold $369 million of class A-1L floating-rate notes at Libor plus 155.5 basis points in the senior slice.

Wells Fargo Securities, LLC arranged the transaction.

The CLO has a 2½-year non-call period and a 4½-year reinvestment period.

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

© 2015 Prospect News.
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