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European Leveraged Loans: Ares Prices €463M CLO; YTD Issuance: €16.7B

Bank of America Merrill Lynch has priced an upsized €463.15 million Ares European CLO X for Ares European Loan Management.

The deal was upsized from €412.05 million, with the triple-As seeing the largest increase. All tranches came in line with guidance except the double-As, which came a touch wider.

Details are as follows:

Aries CLO 2018-07-26

The deal will settle on Sept. 6, and matures Oct. 15, 2031. The non-call period ends Oct. 15, 2020, and the reinvestment period ends on April, 15, 2023. The WAL test is 8.5 years.

The deal complies with European risk retention, with the manager taking a horizontal strip.

Ares priced its last CLO — the €413.7 million Ares European CLO IX — via Goldman Sachs in February, with the triple-As paying plus 68 bps on the floating-rate tranche.

This transaction takes the July new-issue numbers to eight deals for €3.3 billion, which is the largest monthly deal count and volume this year.

The year-to-date European CLO deal count and volume is now 40 for €16.7 billion, versus 26 for €10.45 billion in the same period last year. — Luke Millar

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