By Cristal Cody
Tupelo, Miss., Jan. 24 – AXA Investment Managers, Inc. priced $350 million of notes due July 2027 in a refinancing of a vintage 2015 collateralized loan obligation offering, according to a notice of executed first supplemental indenture.
Allegro CLO III, Ltd./Allegro CLO III LLC sold $244 million of class A-R senior secured floating-rate notes at Libor plus 84 basis points, $45 million of class B-1-R senior secured floating-rate notes at Libor plus 135 bps, $10 million of 3.64% class B-2-R senior secured fixed-rate notes, $28 million of class C-R mezzanine secured deferrable floating-rate notes at Libor plus 165 bps and $23 million of class D-R mezzanine secured deferrable floating-rate notes at Libor plus 265 bps.
Morgan Stanley & Co. LLC arranged the refinancing.
The refinanced CLO has an extended non-call period to but excluding July 19, 2018.
The original notes were issued May 25, 2015. The CLO had priced $3 million of class X floating-rate notes at Libor plus 100 bps; $244 million of class A floating-rate notes at Libor plus 152 bps; $45 million of class B-1 floating-rate notes at Libor plus 220 bps; $10 million of 4% class B-2 fixed-rate notes; $28 million of class C deferrable floating-rate notes at Libor plus 325 bps; $23 million of class D deferrable floating-rate notes at Libor plus 370 bps; $19 million of class E deferrable floating-rate notes at Libor plus 510 bps; $7 million of class F deferrable floating-rate note at Libor plus 615 bps and $35 million of subordinated notes.
Proceeds from the refinancing were used to redeem the original A, B-1, B-2, C and D notes.
The deal is backed primarily by broadly syndicated first-lien senior secured loans.
Greenwich, Conn.-based AXA is an asset management firm and subsidiary of Paris-based AXA Group.
| Issuer: | Allegro CLO III, Ltd./Allegro CLO III LLC
|
| Amount: | $350 million refinancing
|
| Maturity: | July 2027
|
| Securities: | Floating- and fixed-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Morgan Stanley & Co. LLC
|
| Manager: | AXA Investment Managers, Inc.
|
| Call feature: | To but excluding July 19, 2018
|
| Refinancing date: | Jan. 19
|
|
|
| Class A-R notes
|
| Amount: | $244 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 84 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B-1-R notes
|
| Amount: | $45 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-2-R notes
|
| Amount: | $10 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.64%
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $28 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $23 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Rating: | S&P: BBB-
|
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