BlackRock brings AAAs at Libor plus 150 bps; Carlyle sells $669.5 million; Oaktree prices

By Cristal Cody

Tupelo, Miss., Feb. 25 – CLO managers brought $1.77 billion in new transactions, according to market sources on Wednesday.

BlackRock Financial Management, Inc. priced a $608.83 million CLO deal.

Carlyle Investment Management LLC sold $669.5 million of notes in the Carlyle Global Market Strategies CLO 2015-1, Ltd./Carlyle Global Market Strategies CLO 2015-1 LLC transaction.

Oaktree Capital Management, LP priced a $495.96 million offering.

Also in the primary market, CIFC Asset Management LLC brought an upsized $614 million of notes due 2027 in the CIFC Funding 2015-I, Ltd./CIFC Funding 2015-I, LLC vehicle, a source said. The transaction via BNP Paribas Securities Corp. was upsized from $563,125,000. Final pricing details were not available by press time.

U.S. CLO issuance year to date climbed to about $12.21 billion with more deals expected to price before the month closes, according to market sources and data compiled by Prospect News.

Deals in the pipeline include BlueMountain Capital Management LLC’s $506.7 million BlueMountain CLO 2015-1 Ltd./BlueMountain CLO 2015-1 LLC transaction via Citigroup Global Markets Inc.

Crestline Denali Capital, LP also is offering $413.7 million of notes in the Denali Capital CLO XI, Ltd./Denali Capital CLO XI, LLC transaction via Natixis Securities Americas LLC.

BlackRock taps market

BlackRock Financial Management priced $608.83 million of notes due April 15, 2027 in the Magnetite XII, Ltd./Magnetite XII LLC CLO offering, according to a market source.

The CLO sold $386.4 million of class A senior secured floating-rate notes at Libor plus 150 basis points at the top of the seven-part deal.

At the bottom of the capital stack, the CLO priced $10.5 million of class F deferrable floating-rate notes at Libor plus 850 bps.

Wells Fargo Securities, LLC was the placement agent.

BlackRock Financial Management will manage the CLO.

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

Carlyle prices $669.5 million

Carlyle Investment Management sold $669.5 million of notes due April 20, 2027 in the nine-tranche Carlyle Global Market Strategies CLO 2015-1 deal, according to a market source.

In the AAA-rated slice, the CLO priced $416 million of class A floating-rate notes at Libor plus 153 bps.

In the mezzanine tranches, the CLO sold $13 million of class F floating-rate notes at Libor plus 620 bps.

Morgan Stanley & Co. LLC was the placement agent.

Carlyle Investment Management will manage the CLO.

The asset management firm, an affiliate of Washington, D.C.-based Carlyle Group, brought four CLO deals in the U.S. market in 2014.

Oaktree Capital taps market

Oaktree Capital Management priced $495.96 million of notes due Feb. 15, 2026 in the Oaktree EIF II series B1, Ltd./Oaktree EIF II series B1, LLC offering, a market source said.

The CLO priced $397.5 million of class A floating-rate notes at Libor plus 155 bps at the top of the four-part deal.

The CLO sold $37.5 million of class C floating-rate notes at Libor plus 320 bps at the bottom of the capital structure.

Wells Fargo Securities, LLC arranged the offering.

Oaktree Capital will manage the CLO.

The asset management firm priced four CLO transactions in the U.S. market in 2014.

Oaktree Capital Management, a subsidiary of Oaktree Capital Group, LLC, is based in Los Angeles.

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