BlackRock prints €410.2 million CLO, market’s second euro deal of year; primary in focus

By Cristal Cody

Tupelo, Miss., Feb. 10 – BlackRock Investment Management (UK) Ltd. priced the year’s second euro-denominated CLO transaction on Wednesday.

BlackRock Investment Management (UK) placed the AAA-rated notes in the €410,238,000 deal at Euribor plus 150 basis points.

Oaktree Capital Management (UK) LLP/Oaktree Capital Management (Europe) LLP brought the year’s first euro CLO when it sold €414.35 million of notes on Jan. 15. Oaktree priced the €230 million tranche of AAA-rated floating-rate notes in the Arbour CLO III Ltd. deal at Euribor plus 145 bps.

Market analysts forecast about €15 billion to €17.5 billion of euro-denominated CLO supply in 2016.

Moody’s Investors Service said in its January CLO report that first-quarter primary action in the U.S. market is expected to be slow, but deal volume in Europe should be strong.

BlackRock Investment Management (UK) priced €410,238,000 of notes due March 15, 2029 in eight tranches in the BlackRock European CLO I Designated Activity Co. deal, according to a market source.

The CLO sold €215 million of class A-1 floating-rate notes at Euribor plus 150 bps and €21,843,000 of 1.55% class A-2 fixed-rate notes at the top of the capital structure.

Credit Suisse Securities (Europe) Ltd. arranged the transaction.

BlackRock Investment Management will manage the CLO.

The CLO is non-callable until March 15, 2018. The reinvestment period ends March 15, 2020.

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