BlueMountain prices $394.35 million; Neuberger closes deal; high-grade secondary active

By Cristal Cody

Tupelo, Miss., June 25 – BlueMountain Capital Management LLC priced $394.35 million of notes in the manager’s first broadly syndicated CLO offering of the year.

In other issuance activity, Neuberger Berman Loan Advisers LLC closed Thursday on its previously reported $398.4 million Neuberger Berman Loan Advisers CLO 37, Ltd./Neuberger Berman Loan Advisers CLO 37, LLC deal.

The manager’s second CLO of the year priced the senior AAA-rated tranche at Libor plus 175 basis points.

New issue volume totals more than $28 billion in the dollar-denominated market and over €8 billion year to date as supply begins to resume moderately following the March Covid-19 pandemic start.

Market analysts now expect about $50 billion of dollar-denominated volume and about €15 billion of euro-denominated supply for the year.

Meanwhile, secondary volume has been heavy in high-grade CBO/CDO/CLO notes over the past two sessions.

On Thursday, $1.15 billion of issues were traded, up from $1.14 billion on Tuesday and $872.01 million on Monday, according to Trace data.

Investment-grade tranches softened to an average 96.10 on Wednesday from 96.80 on Tuesday and 96.60 on Monday.

Average prices for non-high-grade CBO/CDO/CLO securities improved as volume declined over the previous session, Trace data shows.

Issues traded at an average 81.40 on Wednesday, compared to 72.30 on Tuesday and 86.40 on Monday.

Secondary market volume in non-high-grade CBO/CDO/CLO issues totaled $175.33 million on Wednesday, $209.22 million on Tuesday and $102.16 million on Monday.

BlueMountain brings CLO

BlueMountain Capital Management priced $394.35 million of notes due July 25, 2031 in the new issuance, according to market sources.

BlueMountain CLO XXIX Ltd./BlueMountain CLO XXIX LLC sold $240 million of class A floating-rate notes at Libor plus 175 bps in the AAA-rated tranche.

Citigroup Global Markets Inc. was the placement agent.

The CLO has a one-year non-call period and a three-year reinvestment period.

The offering is collateralized mostly by broadly syndicated senior secured loans.

BlueMountain Capital Management is based in New York City.

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