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Moody's Investors Service Inc.

Moody's Assigns Provisional Rating to AGL CLO 25 Ltd. Refinancing Notes

Strategic Insights

— 1 min read

Moody's Investors Service has assigned a provisional rating to one class of CLO refinancing notes issued by AGL CLO 25 Ltd. The rating is based on the issuer's managed cash flow collateralized loan obligation (CLO) structure and portfolio, which consists primarily of broadly syndicated senior secured corporate loans. The Manager, AGL CLO Credit Management LLC, will continue to direct the selection, acquisition, and disposition of assets, and may engage in trading activity during the extended five-year reinvestment period.

Key Takeaways:

  • Moody's has assigned a provisional rating of (P)Aaa (sf) to the U.S.$315,000,000 Class A1-R Senior Secured Floating Rate Notes due 2038 issued by AGL CLO 25 Ltd.
  • The rating is based on the issuer's managed cash flow CLO structure and portfolio, which consists primarily of broadly syndicated senior secured corporate loans.
  • The Manager, AGL CLO Credit Management LLC, will continue to direct the selection, acquisition, and disposition of assets and may engage in trading activity during the extended five-year reinvestment period.
  • The portfolio must consist of at least 90.0% first lien senior secured loans and up to 10.0% second lien loans, unsecured loans, senior secured bonds, or senior secured notes.
  • Other changes to the transaction features will occur in connection with the refinancing, including extension of the reinvestment period, extensions of the stated maturity and non-call period, and changes to certain collateral quality tests.

Statistics:

  • U.S.$315,000,000 in Refinancing Notes issued by AGL CLO 25 Ltd.
  • 90.0% of the portfolio must consist of first lien senior secured loans
  • 10.0% of the portfolio may consist of second lien loans, unsecured loans, senior secured bonds, or senior secured notes
  • 85 Diversity Score
  • 3183 Weighted Average Rating Factor (WARF)
  • 3.10% Weighted Average Spread (WAS)
  • 7.00% Weighted Average Coupon (WAC)
  • 46.00% Weighted Average Recovery Rate (WARR)
  • 8.0 years Weighted Average Life (WAL)

Sources:

  • "Moody's Global Approach to Rating Collateralized Loan Obligations" (Moody's, May 2024)
  • https://ratings.moodys.com/rmc-documents/420962
  • Moody's rating methodology page: https://ratings.moodys.com for a copy of the methodology.

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