American Capital, Ltd. ACAS ("American Capital") announced today that an affiliate, ACAS CLO 2014-2, Ltd. ("ACAS CLO 2014-2"), has closed on the sale of $411 million of collateralized loan obligation ("CLO") bonds. The transaction was arranged by Wells Fargo Securities, LLC. ACAS CLO 2014-2 is externally managed by American Capital CLO Management, LLC, which is a subsidiary of American Capital Asset Management, LLC, a wholly-owned portfolio company of American Capital, for an annual management fee of 50 basis points on total assets.
ACAS CLO 2014-2 has invested the proceeds of the bonds primarily in broadly syndicated senior secured floating rate loans purchased in the primary and secondary markets. American Capital Asset Management now manages approximately $2.8 billion of broadly syndicated senior secured floating rate loans in six CLOs and American Capital Senior Floating, Ltd. ACSF, a business development company.
"We are pleased to announce our fifth CLO transaction post the credit crisis and our sixth overall," said Mark Pelletier, President of American Capital CLO Management, LLC and President and Chief Investment Officer of American Capital Senior Floating, Ltd. "We are delighted to have again acted as a retention provider in accordance with European risk retention requirements, allowing us to continue to attract repeat as well as new European investors to our CLO platform."
The bonds sold by ACAS CLO 2014-2 included tranches rated Aaa(sf) through Ba3(sf) by Moody's, a AAA(sf) tranche rated by Fitch and non‑rated subordinated notes. American Capital CLO Management, LLC purchased $25 million of the non‑rated subordinated notes, with third party investors purchasing the remaining $16 million. The retention of a control equity investment by American Capital CLO Management, LLC is intended to make ACAS CLO 2014-2 compliant with risk retention rules applicable to credit institutions regulated in the European Economic Area.
Capital Structure
Tranche
% of Total
Capital
Principal Amount ($)
Moody's
Fitch
Spread/Coupon
Class A-1
55.0%
$226,000,000
Aaa
AAA
L+160
Class A-2
8.8%
$36,000,000
Aaa
AAA
3.6340%
Class B-1
7.3%
$30,000,000
Aa2
NR
L+220
Class B-2
1.5%
$6,000,000
Aa2
NR
4.5510%
Class C
6.6%
$27,200,000
A2
NR
L+320
Class D
5.8%
$24,000,000
Baa3
NR
L+390
Class E
5.1%
$20,800,000
Ba3
NR
L+575
Equity
9.9%
$40,796,000
NR
NR
100.0%
$410,796,000
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in