BlackRock prices $502 million CLO; CBAM prices $478 million CLO; trading volume drops

By Cristal Cody

Tupelo, Miss., Aug. 6 – CLO issuance remains steady with two more managers pricing new transactions.

BlackRock Financial Management, Inc. sold $502 million of notes in the manager’s second CLO offering of the year.

Magnetite XXVII, Ltd./Magnetite XXVII LLC priced $295 million of class A-1 floating-rate notes at Libor plus 155 bps at the top of the capital stack.

The AAA-rated tranche in the latest offering priced 20 basis points tighter than where the senior note priced in the manager’s first offering of the year, the Magnetite XXVI, Ltd./Magnetite XXVI LLC vehicle, on May 18.

Meanwhile, CBAM Partners LLC priced $478 million of notes in the manager’s first new dollar-denominated broadly syndicated CLO deal this year.

About $44 billion of dollar-denominated CLOs have priced year to date, according to market sources.

Secondary market activity slowed over the prior session.

Trading volume included $231.39 million of high-grade CBO/CDO/CLO paper traded at average 98.10, and $85.39 million of lower-rated issues traded at an average 77.50 on Wednesday, according to Trace data.

Volume was strong on Tuesday with $681.02 million of investment-grade issues and $184 million of non-high-grade paper traded. The high-grade issues were traded Tuesday at an average 95.80, while lower-rated securities ended the day at an 80 average.

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