Ares Management is prepping a $500 million collateralized loan obligation, according to a presale report by Moody’s Investors Service.

Citigroup is the lead arranger.

The deal, Ares Enhanced Loan Investment Strategy IR, is being used to refinance the senior notes of an existing CLO issued in 2008. The subordinated notes issued by the original CLO will remain outstanding.

Moody’s has rated the two senior classes of notes to be issued by the new CLO: $236 million A1 notes being marketed at three-month Libor plus 125 basis points and $87 million A2 notes at Libor plus 100 basis points. Both have preliminary, ‘AAA’ ratings.

The trust will issue six other classes of notes not rated by Moody’s.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.