BlackRock, PineBridge price new CLOs; New York Life refinances 2012 CLO; Oaktree preps CLO

By Cristal Cody

Eureka Springs, Ark., Oct. 3 – CLO primary and refinancing action remains strong ahead of the December compliance deadline for risk retention requirements, sources report.

BlackRock Financial Management, Inc. brought $539.55 million of notes in its second new CLO deal of the year.

New York Life Investment Management LLC refinanced $349.5 million of notes in a vintage 2012 CLO offering.

In the European CLO primary market, PineBridge Investments Europe Ltd. priced a €411.1 million deal.

Also, Oaktree Capital Management (UK) LLP is marketing a €413.45 million euro-denominated CLO.

In other activity, “Markets await clarity on the Deutsche Bank situation, and there has also been some stress in swap spreads and macro noise,” J.P. Morgan Securities LLC analysts said in a note. “For CLOs, the point is that with spread compression there is less room to keep outperforming, but we don't think we're quite there yet.”

BlackRock prices CLO

BlackRock Financial Management sold $539.55 million of notes due Nov. 15, 2028 in a new collateralized loan obligation deal, according to a market source.

Magnetite XVIII, Ltd./Magnetite XVIII LLC priced $340.26 million of class A senior secured floating-rate notes at Libor plus 140 basis points in the senior tranche.

Goldman Sachs & Co. arranged the deal.

BlackRock Financial Management will manage the CLO.

The firm has priced two new CLOs 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.

New York Life refinances

New York Life Investment Management refinanced $349.5 million of notes due Oct. 25, 2024 in the Flatiron 2012-1 CLO Ltd./Flatiron CLO 2012-1 LLC transaction, according to a market source.

In the AAA-rated tranche, the CLO refinanced $267.5 million of class A-1R senior secured floating-rate notes at Libor plus 121 bps.

Morgan Stanley & Co. LLC was the refinancing agent.

New York Life Investment Management manages the CLO.

The subsidiary of mutual life insurance company New York Life Insurance Co. was previously in the CLO primary market in 2013.

PineBridge taps market

PineBridge Investments Europe priced a €411.1 million CLO offering of notes due Nov. 10, 2030, according to a market source.

Euro-Galaxy V CLO BV sold €60 million of class A-R senior secured variable funding notes (Aaa/AAA) at Euribor plus 114 bps and €184 million of class A-1 senior secured floating-rate notes (Aaa/AAA) at Libor plus 114 bps at the top of the capital structure.

J.P. Morgan Securities plc was the placement agent.

PineBridge Investments Europe will manage the CLO, which is backed primarily by euro-denominated senior secured loans and bonds. Credit Industriel et Commercial is the junior collateral manager.

The CLO is non-callable until Nov. 10, 2018, and the reinvestment period ends Nov. 10, 2020.

PineBridge has priced one CLO offering year to date and priced one euro-denominated CLO in 2015.

The CLO manager is an affiliate of New York City-based asset management firm PineBridge Investments LLC.

Oaktree to price CLO

Oaktree Capital Management (UK) plans to price €413.45 million of notes due Jan. 15, 2030 in the Arbour CLO IV DAC transaction, according to a market source.

The deal includes €30 million of class A-1 senior secured fixed-rate notes (Aaa//AAA); €214 million of class A-2 senior secured floating-rate notes (Aaa//AAA); €42.2 million of class B senior secured floating-rate notes (Aa2//AA); €25 million of class C senior secured deferrable floating-rate notes (A2//A); €21.5 million of class D senior secured deferrable floating-rate notes (Baa2//BBB); €26.75 million of class E senior secured deferrable floating-rate notes (Ba2//BB); €11 million of class F senior secured deferrable floating-rate notes (B2//B-) and €43 million of subordinated notes.

Oaktree will manage the CLO.

The deal is collateralized mainly by senior secured loans and senior secured floating-rate notes.

Oaktree previously priced the €414.35 million Arbour CLO III Ltd. transaction in January.

The London-based firm is an affiliate of Los Angeles-based Oaktree Capital Management, LP.

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