Apollo campaigns for investors to call its CLO

By Sayed Kadiri

Apollo Global Management is seeking to gather enough votes to redeem one of its 2005 vintage CLOs and maximise returns for investors, according to a notice on CLO-i

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TAGS: Apollo

View details on CLO-i: Gulf Stream-Compass CLO 2005-II

Comment by: Anonymous. Posted 9 years ago [2014-04-10 01:29:36]

Interesting, would an equity holder really maximize its return by calling the deal now? That decision rests on a projection of likely future cash flows to equity without the call compared to likely liquidation value. There's uncertainty in both of those estimates. The equity holder may be better served by offering its position to the market at a level it considers good compensation for future cash flows.