Aegon prices $510.5 million; BlackRock sells €413.5 million CLO; GC Advisors refinances

By Cristal Cody

Tupelo, Miss., March 26 – New CLO primary activity includes deals in the U.S. and European markets.

Aegon USA Investment Management LLC priced $510.5 million of notes in its second new CLO of the year.

BlackRock Investment Management (UK) Ltd. sold €413.5 million of notes due July 16, 2031 in a new euro-denominated CLO. The manager also has refinanced a vintage European CLO in 2018.

In the refinancing space, GC Advisors LLC repriced $283.5 million of notes from a 2014 CLO.

Stronger refinancing action is expected after April 2 if no appeals are filed against the U.S. Court of Appeals for the District of Columbia’s ruling in February, according to market sources.

The ruling removes the risk retention requirement that CLO managers retain 5% of a CLO deal.

“We hear that certain upcoming refinancing and reset transactions are not risk retention compliant but include provisions to upsize the deal with risk retention capital should the government in fact appeal on or before March 26,” BofA Merrill Lynch analysts said in a note released on Monday.

More than $25 billion of U.S. dollar-denominated CLOs and more than €6 billion of euro-denominated CLOs have priced year to date, in addition to about $26 billion of U.S. refinancing volume and about €3 billion of European refinancing issuance, according to the BofA Merrill Lynch note.

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