Ares CLO Management to refinance $552 million of notes from 2016 Ares XLI CLO offering

By Cristal Cody

Tupelo, Miss., July 10 – Ares CLO Management LLC plans to price $552 million of notes in a Rule 144A and Regulation S refinancing of the vintage 2016 Ares XLI CLO Ltd./Ares XLI CLO LLC transaction, according to a notice of proposed first supplemental indenture on Tuesday.

The deal includes $390 million of class A-R senior floating-rate notes (expected ratings AAA); $66 million of class B-R senior floating-rate notes (expected ratings AA); $39 million of class C-R mezzanine deferrable floating-rate notes (expected ratings AA); $33 million of class D-R mezzanine deferrable floating-rate notes (expected ratings/BBB-) and $24 million of class E-R mezzanine deferrable floating-rate notes (expected ratings BB-).

BNP Paribas Securities Corp. is the refinancing placement agent.

Ares CLO Management, a subsidiary of Ares Management LLC, will manage the CLO.

The CLO was originally issued Dec. 21, 2016.

In that offering, the CLO priced $390 million of class A notes at Libor plus 141 basis points, $66 million of class B notes at Libor plus 180 bps, $39 million of class C notes at Libor plus 260 bps, $33 million of class D notes at Libor plus 420 bps and $24 million of class E notes at Libor plus 700 bps. The original deal included $62.1 million of subordinated notes in the equity tranche.

Proceeds from the refinancing will be used to redeem the outstanding notes due Jan. 15, 2029.

The CLO is backed primarily by senior secured corporate loans.

Ares Management is an alternative asset management firm based in Los Angeles.

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