AXA Investment Managers to refinance $414 million 2016 Allegro CLO IV notes

By Cristal Cody

Tupelo, Miss., June 17 – AXA Investment Managers, Inc. plans to price $414 million of notes in a refinancing of a vintage 2016 collateralized loan obligation offering, according to a notice of proposed supplemental indenture on Friday.

The Allegro CLO IV, Ltd./Allegro CLO IV LLC deal includes $288 million of class A-R senior secured floating-rate notes (expected ratings Aaa//AAA); $52.65 million of class B-R senior secured floating-rate notes (expected ratings Aa2); $24.75 million of class C-R mezzanine secured deferrable floating-rate notes (expected ratings A2); $27 million of class D-R mezzanine secured deferrable floating-rate notes (expected ratings Baa3); and $21.6 million of class E-R mezzanine secured deferrable floating-rate notes (expected ratings Ba3).

Goldman Sachs & Co. LLC is the refinancing placement agent.

The CLO will have an extended maturity and an extended non-call period. The reinvestment period ends in January 2021.

Allegro CLO IV was originally issued as a $405.5 million offering of notes due Jan. 15, 2029 on Dec. 22, 2016.

The original CLO priced $256 million of class A floating-rate notes at Libor plus 142 basis points; $46.8 million of class B floating-rate notes at Libor plus 200 bps; $22 million of class C floating-rate notes at Libor plus 260 bps; $24 million of class D floating-rate notes at Libor plus 395 bps; $19.2 million of class E floating-rate notes at Libor plus 750 bps and $37.5 million of subordinated notes.

Proceeds from the refinancing will be used to redeem the original notes on July 15.

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

Greenwich, Conn.-based AXA is an asset management firm and subsidiary of Paris-based AXA Group.

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