American Capital Ltd. said Wednesday that it closed on the sale of $552 million of collateralized loan obligation bonds. Deutsche Bank Securities Inc. arranged the deal. American Capital CLO Management LLC, a subsidiary of American Capital Asset Management LLC, externally managed the CLO.
BETHESDA, Md., May 6, 2015 /PRNewswire/ — American Capital, Ltd. (Nasdaq: ACAS) (“American Capital” or the “Company”) announced today that an affiliate, ACAS CLO 2015-1, Ltd. (“ACAS CLO 2015-1”), has closed on the sale of $552 million of collateralized loan obligation (“CLO”) bonds. The transaction was arranged by Deutsche Bank Securities, Inc. ACAS CLO 2015-1 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 2015-1 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, LLC manages approximately $3.3 billion of loan and loan-related assets in seven American Capital CLOs, in the equity of approximately 55 third-party CLOs and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) as of March 31, 2015.
“We are pleased to announce our sixth CLO transaction post the credit crisis and our seventh overall,” said Mark Pelletier, President of American Capital CLO Management, LLC and President and Chief Investment Officer of American Capital Senior Floating, Ltd. “ACAS 2015-1 was structured in an effort to comply with both European and impending U.S. risk retention rules, allowing us to continue to attract repeat as well as new investors to our platform.”
The bonds sold by ACAS CLO 2015-1 included tranches rated Aaa(sf) through B2(sf) by Moody’s, AAA(sf) tranches rated by Fitch and non rated subordinated notes. American Capital CLO Management, LLC purchased $29.53 million of the non rated subordinated notes, with third party investors purchasing the remaining $16 million. The retention of a control equity investment by American Capital CLO Management, LLC is intended to make ACAS CLO 2015-1 compliant with risk retention rules applicable to credit institutions regulated in the European Economic Area.
Tranche % of Total Capital Principal Amount ($) Moody’s Fitch Spread/Coupon
Class A-1 60.1 331,950,000 Aaa (sf) AAA(sf) L+1.49%
Class A-2 2.7 15,000,000 Aaa (sf) AAA(sf) 3.01%
Class B 10.5 58,050,000 Aa2 (sf) L+2.10%
Class C 6.8 37,800,000 A2 (sf) L+3.05%
Class D 5.4 29,700,000 Baa3 (sf) L+3.65%
Class E 4.4 24,300,000 Ba3 (sf) L+5.45%
Class F 1.8 10,125,000 B2 (sf) L+6.65%
Equity 8.2 45,530,000
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. American Capital manages $23 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $92 billion of total assets under management (including levered assets). Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of total net book value. From its eight offices in the U.S., Europe and Asia, American Capital and its wholly owned affiliate, European Capital, will consider investment opportunities from $10 million to $600 million. For further information, please refer to www.AmericanCapital.com.
The securities referred to herein have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such act. This announcement does not constitute an offer to sell or the solicitation of any offer to buy any of the securities. This announcement appears as a matter of record only.
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