Angelo, Gordon & Co., Och-Ziff market deals; Ares discusses $1.26 billion CLO offering

By Cristal Cody

Tupelo, Miss., Aug. 4 – Angelo, Gordon & Co., LP plans to return to the primary market a second time this year with a $615.8 million deal, according to a market source on Monday.

The Northwoods Capital XII Ltd./Northwoods Capital XII LLC transaction is expected to place six tranches of notes, including one tranche of subordinated notes.

Goldman Sachs & Co. will arrange the offering.

The transaction is expected to close later in September.

Angelo, Gordon’s last CLO offering was the $621.8 million Northwoods Capital XI, Ltd./Northwoods Capital XI, LLC deal brought in March.

The New York City-based alternative investment manager priced one CLO offering in 2013.

Och-Ziff Loan Management LP plans to bring the firm’s third CLO offering of the year.

The OZLM VIII, Ltd./OZLM VIII, LLC deal includes $518.5 million of notes, according to a market source.

BofA Merrill Lynch is the underwriter.

Och-Ziff Loan Management was in the primary market earlier in the year with the $621.25 million OZLM VI CLO, Ltd./OZLM VI CLO, LLC deal in March and the $824.75 million OZLM VII, Ltd./OZLM VII, LLC offering in June.

The subsidiary of New York City-based alternative asset manager Och-Ziff Capital Management Group LLC placed three CLOs in 2013.

Looking ahead, about $7.5 billion of CLO transactions are in the pipeline, according to a market source.

Ares confirms deal

Ares Management LLC confirmed its $1.26 billion CLO deal that priced on Wednesday is the largest in the firm’s history, according to a news release on Monday.

Ares XXXI CLO Ltd./Ares XXXI CLO LLC priced the AAA-rated tranche of notes at Libor plus 144 basis points, according to a market source.

J.P. Morgan Securities LLC was the placement agent.

Ares Management said in the release that the CLO is “primarily comprised of broadly syndicated first-lien senior secured U.S. bank loans.”

The Ares XXXI CLO deal is expected to close by the end of the third quarter, according to the statement.

Ares Management said the deal is the largest CLO offering in its history and one of the largest CLO transactions brought since 2007.

Four U.S. dollar-denominated CLO transactions totaling more than $1 billion have priced through July. Apollo Credit Management (CLO) LLC, which priced the $1.54 billion ALM XIV, Ltd. transaction in June, has brought the largest offering to date in 2014.

Ares Management is a Los Angeles-based global alternative asset manager with more than $12 billion of CLOs under management in the U.S. and European markets as of March 31.

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