By Cristal Cody
Tupelo, Miss., April 10 – BlackRock Financial Management, Inc. refinanced $476.75 million of 10-year notes in a vintage 2014 collateralized loan obligation deal, according to a market source and a notice of revised supplemental indenture on Friday.
Magnetite XI, Ltd./Magnetite XI LLC priced $349.25 million of class A-1-R senior secured floating-rate notes at par to yield Libor plus 112 basis points, $63.75 million of class A-2-R senior secured floating-rate notes at par to yield Libor plus 150 bps, $30.75 million of class B-R deferrable mezzanine floating-rate notes at par to yield Libor plus 210 bps and $33 million of class C deferrable mezzanine floating-rate notes at par to yield Libor plus 315 bps.
Credit Suisse Securities (USA) LLC arranged the refinancing.
BlackRock Financial Management will remain the CLO manager.
Magnetite XI originally priced $561 million of the notes on Dec. 4, 2014. The CLO placed $349.3 million of class A-1 floating-rate notes at Libor plus 145 bps; $63.8 million of class A-2 floating-rate notes at Libor plus 235 bps; $30.8 million of class B floating-rate notes at Libor plus 330 bps; $33 million of class C floating-rate notes at Libor plus 360 bps; $30.3 million of class D floating-rate notes at Libor plus 515 bps and $53.8 million of subordinated notes.
The class D tranche was not refinanced.
Proceeds from the refinancing will be used to redeem the original class A-1, A-2, B and C notes on April 18.
BlackRock priced two new CLOs and refinanced two vintage CLOs in 2016.
The investment management firm is based in New York City.
| Issuer: | Magnetite XI, Ltd./Magnetite XI LLC
|
| Amount: | $476.75 million refinancing
|
| Maturity: | Jan. 18, 2027
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | BlackRock Financial Management, Inc.
|
| Pricing date: | April 3
|
| Settlement date: | April 18
|
|
|
| Class A-1-R notes
|
| Amount: | $349.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 112 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class A-2-R notes
|
| Amount: | $63.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B-R notes
|
| Amount: | $30.75 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 210 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C-R notes
|
| Amount: | $33 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Price: | Par
|
| Rating: | Moody’s: Baa3 expected
|
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