By Cristal Cody
Tupelo, Miss., Nov. 24 – Ares Management LP subsidiary Ares CLO Management LLC priced $409 million of notes due Oct. 25, 2031 in a new collateralized loan obligation offering, according to market sources.
Ares LVII CLO Ltd./Ares LVII CLO LLC sold $4 million of class X floating-rate notes at Libor plus 75 basis points, $256 million of class A floating-rate notes at Libor plus 132 bps and $48 million of class B floating-rate notes at Libor plus 175 bps.
The CLO also priced $24 million of class C deferrable floating-rate notes at Libor plus 250 bps, $24 million of class D deferrable floating-rate notes at Libor plus 435 bps, $13 million of class E deferrable floating-rate notes at Libor plus 623 bps and $40 million of subordinated notes.
J.P. Morgan Securities LLC was the placement agent.
Ares CLO Management will manage the CLO.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is backed primarily by broadly syndicated senior secured corporate loans.
Ares has priced three new dollar-denominated CLOs year to date.
The alternative asset management firm is based in Los Angeles.
| Issuer: | Ares LVII CLO Ltd./Ares LVII CLO LLC
|
| Amount: | $409 million
|
| Maturity: | Oct. 25, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | J.P. Morgan Securities LLC
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | One year
|
| Pricing date: | Oct. 21
|
| Settlement date: | Dec. 2
|
|
|
| Class A notes
|
| Amount: | $4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 75 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 132 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $24 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $13 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 623 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $40 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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