By Cristal Cody
Tupelo, Miss., March 6 - Ares Management LLC sold an upsized $513.75 million of notes due April 15, 2026 in the Ares XXIX CLO Ltd./Ares XXIX CLO LLC transaction, according to a market source on Thursday.
The offering was upsized from an initial deal estimate of $411.95 million.
The CLO priced $325 million of class A-1 senior floating-rate notes (//AAA) at Libor plus 150 basis points; $45 million of class A-2 floating-rate notes at Libor plus 200 bps; $33.75 million of class B floating-rate notes at Libor plus 280 bps; $27.5 million of class C floating-rate notes at Libor plus 350 bps; $29.4 million of class D floating-rate notes at Libor plus 480 bps; $4.75 million of class E floating-rate notes at Libor plus 575 bps and $48.35 million of subordinated notes.
Citigroup Global Markets Inc. arranged the deal.
Ares Management affiliate Ares CLO Management XXIX, LP is the CLO manager.
The deal has a two-year non-call period and a four-year reinvestment period.
The CLO is backed primarily by broadly syndicated senior secured corporate loans.
Ares Management was in the primary market in 2013 with three U.S. CLO transactions and one European CLO deal.
The Los Angeles-based asset manager priced the $940 million Ares XXVI CLO Ltd./Ares XXVI CLO LLC offering, the $412.8 million Ares XXVII CLO Ltd./Ares XXVII CLO LLC transaction, the $518.5 million Ares XXVIII CLO Ltd./Ares XXVIII CLO LLC deal and the €310.5 million Ares European CLO VI Ltd. vehicle.
| Issuer: | Ares XXIX CLO Ltd./Ares XXIX CLO LLC
|
| Amount: | $513.75 million
|
| Maturity: | April 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Ares CLO Management XXIX, LP
|
| Call feature: | 2016
|
| Settlement date: | April 3
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $325 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: Libor plus 150 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: Libor plus 200 bps
|
| Rating: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $33.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: Libor plus 280 bps
|
| Rating: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $27.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: Libor plus 350 bps
|
| Rating: | Non-rated
|
|
|
| Class D notes
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| Amount: | $29.4 million
|
| Securities: | Floating-rate notes
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| Coupon: Libor plus 480 bps
|
| Rating: | Non-rated
|
|
|
| Class E notes
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| Amount: | $4.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: Libor plus 575 bps
|
| Rating: | Non-rated
|
|
|
| Equity tranche
|
| Amount: | $48.35 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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