By Cristal Cody
Tupelo, Miss., April 1 – Ares Management LLC priced $465 million of notes in a refinancing and reset of the vintage Ares XXXIX CLO, Ltd. transaction, according to a market source and a notice of proposed first supplemental indenture and proposed second supplemental indenture.
The CLO sold $5 million of class X-R senior floating-rate notes at Libor plus 65 basis points, $304 million of class A-1-R senior floating-rate notes at Libor plus 133 bps, $21 million of class A-2-R senior floating-rate notes at Libor plus 153 bps and $55 million of class B-R senior floating-rate notes at Libor plus 185 bps.
Ares XXXIX also priced $26.9 million of class C-R mezzanine deferrable floating-rate notes at Libor plus 270 bps, $28.1 million of class D-R mezzanine deferrable floating-rate notes at Libor plus 390 bps and $25 million of class E-R mezzanine deferrable floating-rate notes at Libor plus 670 bps.
J.P. Morgan Securities LLC was the refinancing placement agent.
Ares CLO Management LLC will continue to manage the CLO.
The refinanced CLO has an extended two-year non-call period and a five-year reinvestment period.
The reset notes are due April 18, 2031.
In the original offering of notes due July 18, 2028 that were issued July 27, 2016, the CLO sold $5 million of class X floating-rate notes at Libor plus 120 bps, $325 million of class A floating-rate notes at Libor plus 153 bps; $55 million of class B floating-rate notes at Libor plus 200 bps; $26.9 million of class C floating-rate notes at Libor plus 275 bps; $28.1 million of class D floating-rate notes at Libor plus 430 bps; $25 million of class E floating-rate notes at Libor plus 725 bps and $45 million of subordinated notes.
Proceeds will be used to redeem the outstanding notes.
Ares Management is an alternative asset management firm based in Los Angeles.
| Issuer: | Ares XXXIX CLO, Ltd.
|
| Amount: | $465 million refinancing
|
| Maturity: | April 18, 2031
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | Two years
|
| Pricing date: | March 15
|
| Settlement date: | April 18
|
|
|
| Class X-R notes
|
| Amount: | $5 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-1-R notes
|
| Amount: | $304 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 133 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $21 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 153 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: Non-rated
|
|
|
| Class B-R notes
|
| Amount: | $55 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 185 bps
|
| Rating: | Moody’s: Non-rated
|
| S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $26.9 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: Non-rated
|
| S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $28.1 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 390 bps
|
| Rating: | Moody’s: Non-rated
|
| S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $25 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 670 bps
|
| Rating: | Moody’s: Ba3
|
| S&P: Non-rated
|
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