By Cristal Cody
Eureka Springs, Ark., Sept. 19 – BlackRock Financial Management, Inc. refinanced $612 million of notes due Jan. 15, 2025 at par in a vintage 2012 collateralized loan obligation deal, according to a market source.
Magnetite VII, Ltd./Magnetite VII LLC sold $372 million of class A-1R floating-rate notes at Libor plus 135 basis points and $75 million of class A-2R floating-rate notes at Libor plus 175 bps.
The original class A-1A and A-1B notes priced at Libor plus 137 bps. The original class A-2A notes priced at Libor plus 225 bps, and the A-2B tranche priced with a 3.5% fixed coupon.
The CLO also refinanced $47.4 million of class B-R floating-rate notes at Libor plus 233 bps; $28.8 million of class C-R floating-rate notes at Libor plus 375 bps and $28.8 million of class D-R floating-rate notes at Libor plus 700 bps.
The original class B notes priced at Libor plus 315 bps, while the class C tranche priced at Libor plus 450 bps and the class D tranche priced at Libor plus 525 bps.
The deal includes the original $60 million equity tranche of subordinated notes.
Citigroup Global Markets Inc. was the refinancing agent.
BlackRock Financial Management is the CLO manager.
Proceeds from the transaction will be used to redeem the original notes on Oct. 17.
The firm has priced one new CLO deal and refinanced one CLO year to date.
BlackRock priced four CLOs and refinanced one vintage CLO in 2015.
The investment management firm is based in New York City.
| Issuer: | Magnetite VII, Ltd./Magnetite VII LLC
|
| Amount: | $612 million refinancing
|
| Maturity: | Jan. 15, 2025
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Citigroup Global Markets Inc.
|
| Manager: | BlackRock Financial Management, Inc.
|
| Pricing date: | Sept. 14
|
| Settlement date: | Oct. 17
|
|
|
| Class A-1R notes
|
| Amount: | $372 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 135 bps
|
| Price: | Par
|
| Ratings: | S&P: AAA
|
| Fitch: AAA expected
|
|
|
| Class A-2R notes
|
| Amount: | $75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | S&P: AA expected
|
|
|
| Class B-B notes
|
| Amount: | $47.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 233 bps
|
| Price: | Par
|
| Rating: | S&P: A
|
|
|
| Class C-R notes
|
| Amount: | $28.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Price: | Par
|
| Rating: | S&P: BBB
|
|
|
| Class D-R notes
|
| Amount: | $28.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Price: | Par
|
| Rating: | S&P: BB
|
|
|
| Equity
|
| Amount: | $60 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
|
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