News Column

American Capital Closes $618.75 Million Managed CLO

July 26, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced that an affiliate, ACAS CLO 2014-1, Ltd. ("ACAS CLO 2014-1"), has closed on the sale of $618.75 million of collateralized loan obligation ("CLO") bonds. The transaction was arranged by Deutsche Bank Securities Inc. ACAS CLO 2014-1 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 of total assets.

ACAS CLO 2014-1 has invested the proceeds of the bonds primarily in broadly syndicated senior secured loans purchased in the primary and secondary markets.

"We are pleased to announce the closing of our fifth CLO under management," said Mark Pelletier, President of American Capital CLO Management, LLC and President and Chief Investment Officer of American Capital Senior Floating, Ltd. (Nasdaq: ACSF). "With this new CLO, the Leveraged Finance Group now manages approximately $4 billion of assets, including publicly traded American Capital Senior Floating, Ltd. We believe our success is the result of the strong performance of our previously issued transactions. CLO investors are very focused on manager performance, and we believe our track record will help us raise additional CLOs. We look forward to continuing to perform for our investors."

The bonds sold by ACAS CLO 2014-1 included tranches rated Aaa(sf) through B2(sf) by Moody's and a non?rated equity tranche of subordinated notes. American Capital CLO Management, LLC purchased $31.0 million of the non?rated equity tranche of subordinated notes, with third party investors purchasing the remaining $20.75 million. The retention of a control equity investment by American Capital CLO Management, LLC is intended to make ACAS CLO 2014-1 compliant with risk retention rules applicable to credit institutions regulated in the European Economic Area.

Keywords for this news article include: American Capital Ltd., Investment and Finance.

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Source: Investment Weekly News


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