BlackRock refinances $496.08 million CLO; Guggenheim eyes middle-market deal

By Cristal Cody

Tupelo, Miss., Nov. 15 – BlackRock Financial Management, Inc. closed Thursday on a $496.08 million offering of refinanced notes from a 2016 CLO deal.

On Wednesday, as previously reported, Neuberger Berman Investment Advisers LLC closed on a $465.25 million second refinancing of a 2014 vintage CLO deal.

Nearly $140 billion of vintage CLOs have been refinanced year to date, according to market sources. For the year, about $170 billion of refinancing supply is forecast by market analysts.

In the new issue space, Guggenheim Partners Investment Management LLC plans to tap the primary market with a $402.5 million middle-market CLO deal.

About $20 billion of middle-market CLOs have priced year to date, according to market sources.

Golub Capital BDC, Inc. was the most recent issuer in the space with the $602.4 million Golub Capital BDC CLO III LLC transaction that priced on Nov. 1.

The middle-market CLO placed the $327 million of class A floating-rate notes at par to yield Libor plus 148 basis points.

BlackRock reprices CLO

BlackRock Financial Management sold $496.08 million of notes due Nov. 15, 2028 in a refinancing of the Magnetite XVIII, Ltd./Magnetite XVIII LLC deal, according to a market source.

Magnetite XVIII priced $340 million of class A-R senior secured floating-rate notes at Libor plus 108 bps in the senior tranche.

Goldman Sachs & Co. LLC was the refinancing placement agent.

The original $539.55 million CLO was issued Nov. 9, 2016. The CLO had priced $340.26 million of the class A senior secured floating-rate notes at Libor plus 140 bps.

Proceeds were used to redeem the original notes.

The CLO is collateralized mainly by broadly syndicated senior secured corporate loans.

The investment management firm is based in New York City.

Guggenheim on tap

Guggenheim Partners Investment Management plans to sell $402.5 million of notes due Jan. 15, 2031 in a middle-market CLO transaction, according to an informed source.

The Guggenheim MM CLO 2018-1 Ltd./Guggenheim MM CLO 2018-1 LLC deal includes $222.2 million of class A floating-rate notes (/AAA/); $40.4 million of class B floating-rate notes (/AA/); $37.4 million of class C floating-rate notes (/A/); $21.2 million of class D floating-rate notes (/BBB/); $20.2 million of class E floating-rate notes (/BB); $8.1 million of class F floating-rate notes (/B/) and $53 million of subordinated notes.

Natixis Securities Americas LLC is the placement agent.

The CLO is collateralized by middle-market senior secured loans.

The deal is expected to close on Dec. 17.

Guggenheim Partners Investment Management is an asset management firm based in New York and Chicago.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.