BlueMountain prices new $510 million CLO; non-high-grade CBO/CDO/CLO issues improve

By Cristal Cody

Tupelo, Miss., Oct. 26 – Details emerged on a new CLO offering that BlueMountain Capital Management LLC priced in the previous week.

The CLO manager sold $510 million of notes in the transaction, bringing the class A-1 tranche at Libor plus 115 basis points.

In the CLO manager’s last new issuance, the $407.95 million BlueMountain CLO XXII Ltd./BlueMountain CLO XXII LLC transaction priced on June 20, the CLO sold class A-1 notes at Libor plus 108 bps.

New issue AAA-rated spreads have been mostly flat over the past few weeks, according to market sources.

Year to date, more than $100 billion of new issue CLOs have priced.

In the secondary market, investment-grade CBO/CDO/CLO issues softened, while non-high-grade issues improved late in the week.

On Thursday, $198.76 million of high-grade CBO/CDO/CLO issues and $61.42 million of lower-rated securities traded, according to Trace data.

The average price for the investment-grade securities was 98.90, while the mezzanine tranches traded at an average price of 90.40.

In its deal, BlueMountain Capital Management priced $510 million of notes due Oct. 20, 2031 in the BlueMountain CLO XXIII Ltd./BlueMountain CLO XXIII LLC transaction, according to a market source.

The CLO sold $291 million of class A-1 floating-rate notes at Libor plus 115 bps at the top of the capital stack.

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