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American Capital Closes $414 Million Managed CLO

September 26, 2013, 07:21 AM
Filed Under: Industry News

American Capital, Ltd. announced an affiliate, ACAS CLO 2013-2, Ltd. (the "CLO"), has closed on the sale of $414 million of collateralized loan obligation bonds.  The transaction was arranged by Citibank, N.A.  The CLO is externally managed by American Capital CLO Management, LLC, 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.

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

"We are pleased to close our second CLO of 2013 today.  American Capital now has four CLOs under management, totaling $1.5 billion in total assets," said Mark Pelletier, American Capital Managing Director, Leveraged Finance Group.

"We view CLO issuance as an integral part of our continued growth as an asset manager and are gratified by the ongoing support of our investors and partners in supporting our latest issuance," said Tom McHale, American Capital Senior Vice President, Finance.

The bonds sold by the CLO included tranches rated AAA(sf) through B(sf) by S&P and a non-rated equity tranche of subordinated notes.  American Capital purchased $8.0 million of the non-rated equity tranche of subordinated notes, with third party investors purchasing the remaining $30.5 million. 

To view the capital structure of this CLO, click here.

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