By Cristal Cody
Tupelo, Miss., June 22 – Ares CLO Management LLC refinanced $417 million of notes in a reset of the Ares XXVII CLO Ltd./Ares XXVII CLO LLC transaction, according to a market source and a notice of executed amended and restated indenture on Thursday.
The CLO sold $4.5 million of class X-R senior floating-rate notes at Libor plus 90 basis points; $229.1 million of class A-R-1 senior floating-rate notes at Libor plus 119 bps; $35.55 million of class A-R-2 senior floating-rate notes at Libor plus 137.5 bps; $27.65 million of class B-R senior floating-rate notes at Libor plus 170 bps; $25,675,000 of class C-R mezzanine deferrable floating-rate notes at Libor plus 240 bps; $21,725,000 of class D-R mezzanine deferrable floating-rate notes at Libor plus 375 bps; $23.7 million of class E-R mezzanine deferrable floating-rate notes at Libor plus 650 bps and $49.1 million of subordinated notes.
BofA Merrill Lynch was the underwriter.
Ares CLO Management, a subsidiary of Ares Management LLC, will manage the CLO.
The new notes are due July 28, 2030. The original notes were due July 28, 2025.
The refinanced CLO has a non-call period that ends on July 28, 2019 and a reinvestment period that ends on July 28, 2022.
In the original $412.8 million transaction that was issued on July 26, 2013, the CLO sold $99 million of class A-1 senior floating-rate notes at Libor plus 125 bps; $150 million of class A-2 senior floating-rate notes at Libor plus 100 bps for the first 18 months, 150 bps for the following 12 months and 175 bps thereafter; $46 million of class B senior floating-rate notes at Libor plus 180 bps; $34 million of class C mezzanine deferrable floating-rate notes at Libor plus 275 bps; $22 million of class D mezzanine deferrable floating-rate notes at Libor plus 375 bps; $17.8 million of class E mezzanine deferrable floating-rate notes at Libor plus 485 bps and $44 million of subordinated notes.
Proceeds were used to redeem the original notes on Thursday.
The deal is backed primarily by broadly syndicated senior secured corporate loans.
Ares Management has priced one new CLO and refinanced three vintage CLOs year to date.
The CLO manager priced two new CLOs and refinanced two vintage CLOs in 2016.
The alternative asset management firm is based in Los Angeles.
| Issuer: | Ares XXVII CLO Ltd./Ares XXVII CLO LLC
|
| Amount: | $417 million refinancing
|
| Maturity: | July 28, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | BofA Merrill Lynch
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | Non-callable through July 28, 2019
|
| Settlement date: | June 22
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X-R notes
|
| Amount: | $4.5 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 90 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-R-1 notes
|
| Amount: | $229.1 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 119 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class A-R-2 notes
|
| Amount: | $35.55 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 137.5 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $27.65 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $25,675,000
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 240 bps
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $21,725,000
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
|
|
| Class E-R notes
|
| Amount: | $23.7 million
|
| Securities: | Mezzanine deferrable floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
|
|
| Equity
|
| Amount: | $49.1 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
|
|
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