American Capital inks $414m CLO deal


Nasdaq-listed American Capital has closed on the sale of $414m of collateralised loan obligation bonds.

The transaction was arranged by Deutsche Bank Securities.

The CLO is externally managed by American Capital Leveraged Finance Management, LLC, a subsidiary of American Capital Asset Management, a wholly-owned portfolio company of American Capital, for an annual management fee of 50 basis points of total assets.

The CLO has primarily invested the proceeds of the bonds in broadly syndicated senior secured loans purchased in the primary and secondary markets, American Capital said.

“We are pleased that we materially improved pricing on the financing of our latest CLO versus the CLO that we raised last September,” said Mark Pelletier, American Capital managing director –  CDO and CLO Group. “We now manage three CLOs and have investments in the equity of 25 CLOs.”

“With this new CLO, American Capital Asset Management continues to expand its funds under management and now manages six private funds and two public REITs,” addedMalon Wilkus, American Capital Chairman and CEO.

The bonds sold by the CLO included AAA through B-rated tranches, and a non rated equity tranche of subordinated notes. American Capital Leveraged Finance Management purchased $25.3m of the non rated equity tranche of subordinated notes, with third party investors purchasing the remaining $11m.

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