BlackRock, BlueMountain bring CLOs; Ares, Fortress refinance vintage 2012 CLOs

By Cristal Cody

Tupelo, Miss., May 29 – Details emerged on new CLOs priced by BlackRock Financial Management, Inc. and BlueMountain Capital Management LLC.

BlackRock Financial Management priced a $535.47 million CLO, while BlueMountain Capital Management sold a $409.1 million CLO.

In refinancing activity, Ares Management LLC refinanced $612.4 million of notes in a vintage 2012 CLO.

Also, Fortress Investment Group LLC refinanced $149.06 million of notes in two vintage 2012 CLO vehicles.

More than $5 billion of CLOs have been refinanced year to date, according to market sources and data compiled by Prospect News.

BlackRock prices

BlackRock Financial Management priced $535.47 million of notes in the Magnetite XIV, Ltd./Magnetite XIV LLC transaction, according to a market source.

The CLO sold $325.5 million of class A floating-rate notes at Libor plus 139 basis points at the top of the capital structure.

Deutsche Bank Securities, Inc. was the placement agent.

BlackRock Financial Management is the CLO manager.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

BlackRock Financial Management previously was in the primary market on Feb. 6 with the $608.83 million Magnetite XII, Ltd./Magnetite XII LLC transaction.

The New York City-based investment management firm priced three CLO deals in 2014.

BlueMountain brings CLO

BlueMountain Capital Management sold $409.1 million of notes due July 20, 2027 in a CLO offering via J.P. Morgan Securities LLC, according to a market source.

BlueMountain CLO 2015-2 Ltd./BlueMountain CLO 2015-2 LLC priced $211.38 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps in the senior tranche.

The CLO is non-callable until July 20, 2018. The reinvestment period ends July 20, 2020.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

BlueMountain Capital Management was last in the primary market on March 3 with the $507.1 million BlueMountain CLO 2015-1 Ltd./BlueMountain CLO 2015-1 LLC transaction.

The New York City-based management firm brought four CLO deals in 2014.

Ares refinances CLO

Ares Management refinanced $612.4 million of notes due Oct. 12, 2023 in a vintage 2012 CLO, according to a market source.

Ares XXIV CLO Ltd./Ares XXIV CLO LLC priced $433.7 million of class A-R senior secured floating-rate notes at Libor plus 129 bps at the top of the structure.

Morgan Stanley & Co. LLC was the refinancing agent.

Ares CLO Management XXIV, LP is the CLO manager.

The CLO is backed primarily by broadly syndicated senior secured loans.

Ares Management, a Los Angeles-based alternative asset management firm, brought three CLO deals in 2014.

Fortress refinances CLO

Fortress Investment Group refinanced $104.6 million of notes due Aug. 15, 2022 in the Fortress Credit Funding V LP deal, a market source said.

At the top of the capital structure, the CLO priced $40.4 million of class A-2R floating-rate notes at Libor plus 265 bps, tighter than where the notes originally priced at Libor plus 375 bps.

Fortress Investment Group also refinanced $44.46 million of notes due Aug. 15, 2022 in the Fortress Credit Funding VI LP vehicle.

In the senior tranche, the CLO refinanced $17.17 million of class A-2R floating-rate notes at Libor plus 265 bps, compared to where the notes originally priced at Libor plus 375 bps.

Natixis Securities America LLC was the refinancing agent for both transactions.

Fortress Investment Group was in the primary market on March 19 with the $350 million Fortress Credit Opportunities VI CLO Ltd./Fortress Credit Opportunities VI CLO LLC deal.

The New York City-based investment firm priced two CLOs in 2014.

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