By Cristal Cody
Tupelo, Miss., Aug. 6 – BlackRock Financial Management, Inc. sold $502 million of notes due July 20, 2033 in the manager’s second collateralized loan obligation offering of the year, according to market sources.
Magnetite XXVII, Ltd./Magnetite XXVII LLC priced $295 million of class A-1 floating-rate notes at Libor plus 155 basis points, $20 million of 1.75% class A-2 fixed-rate notes and $65 million of class B floating-rate notes at Libor plus 205 bps,
The CLO sold $28.75 million of class C deferrable floating-rate notes at Libor plus 265 bps; $28.75 million of class D deferrable floating-rate notes at Libor plus 400 bps; $15 million of class E deferrable floating-rate notes at Libor plus 748 bps and $49.5 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is collateralized primarily by broadly syndicated first-lien senior secured loans.
BlackRock is an investment management firm based in New York City.
| Issuer: | Magnetite XXVII, Ltd./Magnetite XXVII LLC
|
| Amount: | $502 million
|
| Maturity: | July 20, 2033
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | BlackRock Financial Management, Inc.
|
| Call feature: | One year
|
| Settlement date: | Aug. 20
|
|
|
| Class A-1 notes
|
| Amount: | $295 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $20 million
|
| Securities: | Fixed-rate notes
|
| Coupon: | 1.75%
|
| Ratings: | S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $65 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $28.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 265 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $28.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
|
| Amount: | $15 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 748 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $49.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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