Owl Rock, Madison Capital tap CLO middle market; BlackRock prices €408.5 million CLO

By Cristal Cody

Tupelo, Miss., May 23 – Owl Rock Capital Advisors LLC priced $597.1 million of notes in the company’s debut middle-market backed CLO transaction.

Madison Capital Funding LLC also tapped the middle market for the first time this year with a new $300.78 million CLO deal.

More than $4 billion of middle-market CLOs have priced year to date, according to BofA Securities.

In other primary action, BlackRock Investment Management (UK) Ltd. priced €408.5 million of notes in a European CLO transaction set to close in June.

Owl Rock prices

Owl Rock Capital Advisors priced $597.1 million of notes due May 20, 2031 in the middle-market backed CLO transaction, according to market sources.

Owl Rock CLO I, Ltd./Owl Rock CLO I, LLC sold $242 million of the class A floating-rate notes at Libor plus 180 basis points, $50 million of class A-L loans at Libor plus 180 bps and $30 million of 4.17% class A-F fixed-rate notes at the top of the stack.

Natixis Securities Americas LLC was the placement agent.

The CLO is backed mainly by broadly syndicated middle-market senior secured term loans.

Owl Rock Capital is a New York-based alternative asset manager and subsidiary of Owl Rock Capital Corp.

Madison Capital brings CLO

Madison Capital Funding priced $300.78 million of loans and notes due July 17, 2031 in its CLO offering, according to an informed source.

At the top of the capital structure, MCF CLO IX Ltd. sold $105 million of class A-1 floating-rate notes at Libor plus 170 bps, $50 million of class A-1 loans at Libor plus 170 bps and $20 million of class A-2 floating-rate notes at Libor plus 195 bps.

Wells Fargo Securities, LLC was the placement agent.

The deal is backed primarily by middle-market first-lien senior secured loans.

Madison Capital Funding is a Chicago-based middle-market finance company and subsidiary of New York Life Insurance Co.

BlackRock sells euro CLO

Meanwhile, BlackRock Investment Management (UK) priced €408.5 million of notes due July 20, 2033 in the new BlackRock European CLO VIII DAC transaction, according to a market source.

In the AAA-rated tranches priced at par, the CLO sold €2 million of class X senior secured floating-rate notes at Euribor plus 47 bps, €240 million of class A-1 senior secured floating-rate notes at Euribor plus 109 bps and €8 million of class A-2 senior secured floating-rate notes at Euribor plus 150 bps.

Natixis, London Branch was the placement agent.

The CLO is backed primarily by euro-denominated broadly syndicated senior secured obligations.

BlackRock Investment Management (UK) is a London-based investment management firm and subsidiary of BlackRock, Inc.

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