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First Apollo CLO of the year tops $2B

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The average deal size for new-issue collateralized loan obligations declined in 2019, as the competition for broadly syndicated loan investments limited the availability of collateral.

But the first deal for Apollo Global Management has reversed that trend.

According to a presale report from S&P Global Ratings, Apollo Global Management has issued its first BSL CLO of the year with a whopping $2.146 billion pool of senior loans, bringing its total CLO assets under management to $17.5 billion.

ALM 2020 includes a $1.375 billion Class A1 series of notes that have a three-month Libor spread of 108 basis points, well within the average primary AAA spread of 133 basis points as of Feb. 27, according to data from Deutsche Bank research.

The portfolio, which is already 94.41% ramped up, will have 261 distinct obligors, with the largest holding 2.29%. The top loan assets are from the insurance, media and diversified telecommunication services sector.

Both S&P and Fitch Ratings are rating the deal, which is expected to close March 3.

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