Chicago, Sept. 12 – Ares CLO Management LLC sold $392.75 million in a collateralized loan obligation being issued by Ares Loan Funding II Ltd./Ares Loan Funding II LLC, according to a presale report.
The notes will mature on Oct. 20, 2036.
The refinanced CLO consists of $248 million of class A-R senior secured floating-rate notes at SOFR plus 167.5 basis points, $56 million of class B-R senior secured floating-rate notes at SOFR plus 240 bps, $24 million of class C-R senior secured deferrable floating-rate notes at SOFR plus 285 bps, $13 million of class D-1-R senior secured deferrable floating-rate notes at SOFR plus 480 bps, $11 million of class D-2-R 8.63% senior secured deferrable fixed-rate notes, $12.4 million of class E-R senior secured deferrable floating-rate notes at SOFR plus 824 bps and $28.35 million of subordinated notes.
The original CLO consisted of $240 million of class A senior secured floating-rate notes at SOFR plus 183 bps, $64 million of class B senior secured floating-rate notes at SOFR plus 240 bps, $23.5 million of class C senior secured deferrable floating-rate notes at SOFR plus 290 bps, $23 million of class D senior secured deferrable floating-rate notes at SOFR plus 418 bps, $12.75 million of class E senior secured deferrable floating-rate notes at SOFR plus 782 bps and $28.35 million of subordinated notes.
Ares CLO Management LLC will manage the collateral through the end of the reinvestment period on Oct. 20, 2028.
Collateral for the notes consists of broadly syndicated speculative-grade senior secured term loans.
The notes can be called starting Sept. 14, 2025.
Citigroup Global Markets Inc. was the placement agent.
The alternative asset management firm is based in Los Angeles.
| Issuer: | Ares Loan Funding II Ltd./Ares Loan Funding II LLC
|
| Issue: | Floating-rate notes, fixed-rate notes and subordinated notes
|
| Amount: | $392.75 million
|
| Maturity: | Oct. 20, 2036
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Ares CLO Management LLC
|
| Call feature: | Sept. 14, 2025
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 14
|
|
|
| Class A-R notes
|
| Amount: | $248 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 167.5 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $56 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 240 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 285 bps
|
| Rating: | S&P: A
|
|
|
| Class D-1-R notes
|
| Amount: | $13 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 480 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-2-R notes
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| Amount: | $11 million
|
| Securities: | Senior secured deferrable fixed-rate notes
|
| Coupon: | 8.63%
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $12.4 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 824 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $28.35 million
|
| Securities: | Subordinated notes
|
|
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