Tiptree Financial prepares to bring new CLO; Apollo settles refinancing of ALM V CLO

By Cristal Cody

Tupelo, Miss., Aug. 13 – Tiptree Financial Inc. is underway with plans to bring a new CLO deal, according to the company on Thursday.

The company said in its second-quarter earnings release that it sold $39.7 million of subordinated notes in two CLOs and contributed the majority to Telos 2015-7, Ltd.

“A portion of the proceeds, $30 million, was invested into a new loan warehouse facility in the third quarter 2015 in anticipation of the creation of a new CLO (Telos 7),” the company said in the release.

Tiptree said in the quarter and six months ended June 30 it sold subordinated notes in the Telos CLO 2007-2, Ltd. and Telos CLO 2013-4, Ltd. vehicles, partly to fund the diversification of principal investments and “secondarily to recycle capital from existing, amortizing CLOs into a new loan warehouse facility with the objective of creating new CLOs to increase asset management fees.”

CLO manager Telos Asset Management LLC, a subsidiary of New York-based Tiptree, was previously in the primary market in 2014 with two CLO deals.

In other market activity, Apollo Credit Management (CLO) LLC refinanced $437.5 million of notes due Oct. 18, 2027 in the previously reported vintage 2012 ALM V, Ltd./ALM V LLC deal.

The $301.5 million tranche of class A-1-R2 senior secured floating-rate notes (Aaa/AAA) was refinanced at Libor plus 142 basis points.

Mitsubishi UFJ Securities (USA) Inc. was the refinancing agent.

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