By Cristal Cody
Tupelo, Miss., Dec. 19 – AXA Investment Managers Inc. priced $412.25 million of notes due Jan. 21, 2027 in its second U.S. collateralized loan obligation transaction, according to a market source.
Allegro CLO II Ltd./Allegro CLO II LLC sold $244.4 million of class A-1 floating-rate notes at Libor plus 160 basis points; $48.5 million of class A-2 floating-rate notes at Libor plus 255 bps; $32.5 million of class B deferrable floating-rate notes at Libor plus 340 bps; $24.8 million of class C deferrable floating-rate notes at Libor plus 415 bps; $15.8 million of class D deferrable floating-rate notes at Libor plus 580 bps; $7.2 million of class E deferrable floating-rate note at Libor plus 675 bps and $39.05 million of subordinated notes.
J.P. Morgan Securities LLC arranged the transaction.
AXA Investment Managers will manage the CLO.
The CLO has a non-call period that ends Jan. 21, 2017. The reinvestment period is scheduled to end on Jan. 21, 2019.
The CLO is backed mainly by broadly syndicated senior secured corporate loans.
AXA Investment Managers was last in the primary market in December 2013 with the $369.35 million Allegro CLO I Ltd./Allegro CLO I LLC transaction.
The asset management firm is a subsidiary of Paris-based AXA Group.
| Issuer: | Allegro CLO II Ltd./Allegro CLO II LLC
|
| Amount: | $412.25 million
|
| Maturity: | Jan. 21, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | J.P. Morgan Securities LLC
|
| Manager: | AXA Investment Managers Inc.
|
| Call feature: | Jan. 21, 2017
|
| Pricing date: | Dec. 18
|
| Settlement date: | Jan. 21
|
|
|
| Class A-1 notes
|
| Amount: | $244.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $48.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 255 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $32.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
|
| Amount: | $24.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 415 bps
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class D notes
|
| Amount: | $15.8 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 580 bps
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Class E notes
|
| Amount: | $7.2 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $39.05 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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