Octagon prices $496.85 million CLO; BlackRock brings $397.7 million; CLO AAAs tighten

By Cristal Cody

Tupelo, Miss., May 26 – In CLO primary action, Octagon Credit Investors, LLC priced $496.85 million of notes in the manager’s first new broadly syndicated deal this year.

Also, BlackRock Financial Management, Inc. sold $397.7 million of notes in its first CLO offering of 2020.

In its deal, Octagon Credit Investors priced $496.85 million of notes due April 20, 2031 in the Octagon Investment Partners 47, Ltd./Octagon Investment Partners 47, LLC broadly syndicated collateralized loan obligation offering, according to market sources.

The CLO sold $300 million of class A-1 notes at Libor plus 185 bps at the top of the capital stack.

Wells Fargo Securities LLC was the placement agent.

Meanwhile, BlackRock Financial Management sold $397.7 million of notes due July 15, 2030 in the manager’s first CLO offering of 2020, according to market sources.

Magnetite XXVI, Ltd./Magnetite XXVI LLC priced $256 million of class A floating-rate notes at Libor plus 175 bps in the AAA-rated tranche.

Goldman Sachs & Co. LLC was the placement agent.

BWIC volume totaled about $1 billion with CLO AAAs accounting for 41% of the total on bid lists, a BofA Securities report said.

CLO AAA-A spreads tightened 10 basis points to 15 bps, while BBB-BB tranches firmed 25 bps to 50 bps over the past week.

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