Apollo Credit Management is planning two actively-managed collateralized loan obligations.
One for $775 million dubbed ALM VII(R), and the other for $843.85 million dubbed ALM VII(R)-2, according to Standard and Poor's presale reports.
Both are arranged by JPMorgan Securities and expected to close in September. They are backed by the same revolving pool consisting primarily of broadly syndicated senior secured loans.
They feature identical structures with two senior classes, four deferrable classes, and subordinate notes rated 'AAA', 'AA', 'A', 'BBB-', 'BB-', and not rated, respectively, by S&P.
The notes from both also have the same interest rates, at three-month Libor plus 134 basis points, 185 bps, 260 bps, 345 bps, 500 bps, and 500 bps for the A-1, A-2, B, C, D, and E classes, respectively.
Apollo, the collateral manager, can enter into trading plans to satisfy the reinvestment guidelines, as well as interest-rate swap, floor, and cap agreements. However, the firm cannot purchase any collateral assets that mature past the stated maturity date nor vote in favor of any waiver, modification, amendment, or variance that would extend the maturity of a collateral obligation beyond the stated maturity date.
