By Cristal Cody
Tupelo, Miss., Jan. 4 – Apollo Credit Management (CLO) LLC priced $604.8 million of notes due Jan. 15, 2028 in a collateralized loan obligation deal, according to a market source.
ALM XVII, Ltd./ALM XVII LLC sold $369 million of class A-1L floating-rate notes at Libor plus 155.5 basis points, $18 million of 3.419% class A-1F fixed-rate notes, $60 million of class A-2L floating-rate notes at Libor plus 235 bps and $6 million of 3.883% class A-2H fixed-rate notes, which convert to Libor plus 235 bps on the payment date in 2020.
The CLO also priced $24.5 million of class B-1 floating-rate notes at Libor plus 340 bps and $7 million of 4.933% class B-2 fixed-rate notes, which convert to Libor plus 340 bps on the 2020 payment date.
At the bottom of the capital structure, ALM XVII sold $11 million of class C-1 floating-rate notes at Libor plus 415 bps; $27.4 million of class C-2 floating-rate notes at Libor plus 485 bps; $29.4 million of class D floating-rate notes at Libor plus 635 bps and $52.5 million of preferred shares.
Wells Fargo Securities, LLC arranged the transaction.
Apollo Credit Management is the CLO manager.
The CLO has a 2½-year non-call period and a 4 ½-year reinvestment period.
The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a portfolio of about $600 million of mostly senior secured leveraged loans.
Apollo Credit Management, a New York City-based subsidiary of Apollo Global Management, LLC, priced four new CLOs and refinanced two vintage CLOs in 2015.
| Issuer: | ALM XVII, Ltd./ALM XVII LLC
|
| Amount: | $604.8 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Fixed-rate and floating-rate notes and preferred shares
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | Apollo Credit Management (CLO) LLC
|
| Call feature: | 2½ years
|
| Pricing date: | Dec. 22
|
| Settlement date: | Jan. 21
|
| Distribution: | Rule 144A
|
|
|
| Class A-1L notes
|
| Amount: | $369 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1F notes
|
| Amount: | $18 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.419%
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2L notes
|
| Amount: | $60 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Ratings: | Non-rated
|
|
|
| Class A-2H notes
|
| Amount: | $6 million
|
| Securities: | Fixed- to floating-rate notes
|
| Coupon: | 3.883%/Libor plus 235 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-1 notes
|
| Amount: | $24.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Ratings: | Non-rated
|
|
|
| Class B-2 notes
|
| Amount: | $7 million
|
| Securities: | Fixed- to floating-rate notes
|
| Coupon: | 4.933%/Libor plus 340 bps
|
| Ratings: | Non-rated
|
|
|
| Class C-1 notes
|
| Amount: | $11 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 415 bps
|
| Ratings: | Non-rated
|
|
|
| Class C-2 notes
|
| Amount: | $27.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 485 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $29.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $52.5 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
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