By Rebecca Melvin
New York, April 28 – AXA Investment Managers Inc. priced $414 million of notes due July 2027 in eight tranches in its third U.S. collateralized loan obligation transaction, according to a market source.
Allegro CLO III Ltd./Allegro CLO III LLC sold $3 million of class X floating-rate notes at Libor plus 100 basis points; $244 million of class A floating-rate notes at Libor plus 152 bps; $45 million of class B-1 floating-rate notes at Libor plus 220 bps; $10 million of 4% class B-2 fixed-rate notes; $28 million of class C deferrable floating-rate notes at Libor plus 325 bps; $23 million of class D deferrable floating-rate notes at Libor plus 370 bps; $19 million of class E deferrable floating-rate notes at Libor plus 510 bps; $7 million of class F deferrable floating-rate note at Libor plus 615 bps and $35 million of subordinated notes.
Morgan Stanley & Co. LLC arranged the transaction.
AXA Investment Managers will manage the CLO.
The CLO has a non-call period that ends July 2017. The reinvestment period is scheduled to end on July 2019.
The CLO is backed mainly by broadly syndicated senior secured corporate loans.
AXA Investment Managers was last in the primary market in December 2014 with the $412.25 million Allegro CLO II Ltd./Allegro CLO II LLC transaction.
The asset management firm is a subsidiary of Paris-based AXA Group.
| Issuer: | Allegro CLO III Ltd./Allegro CLO III LLC
|
| Amount: | $414 million
|
| Maturity: | July 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: Morgan Stanley & Co. LLC
|
| Manager: | AXA Investment Managers Inc.
|
| Call feature: | July 2017
|
| Reinvestment period: | July 2019
|
| Pricing: | April
|
| Settlement: | May
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class A notes
|
| Amount: | $244 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 152 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $45 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
|
| Amount: | $10 million
|
| Securities: | Fixed -rate notes
|
| Coupon: | 4%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C notes
|
| Amount: | $28 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $23 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 370 bps
|
| Rating: | Standard & Poor’s: BBB-
|
|
|
| Class E notes
|
| Amount: | $19 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Standard & Poor’s: BB-
|
|
|
| Class F notes
|
| Amount: | $7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 615 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $35 million
|
| Securities: | Subordinated notes
|
| Rating: | Not rated
|
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