By Cristal Cody
Tupelo, Miss., Dec. 15 – BlackRock Financial Management, Inc. priced $561 million of notes due Dec. 18, 2026 in the Magnetite XI, Ltd./Magnetite XI LLC collateralized loan obligation transaction, according to a market source.
The CLO placed $349.3 million of class A-1 floating-rate notes at Libor plus 145 basis points; $63.8 million of class A-2 floating-rate notes at Libor plus 235 bps; $30.8 million of class B floating-rate notes at Libor plus 330 bps; $33 million of class C floating-rate notes at Libor plus 360 bps; $30.3 million of class D floating-rate notes at Libor plus 515 bps and $53.8 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
BlackRock Financial Management is the CLO manager.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is backed primarily by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a portfolio of about $550 million of leveraged loans.
BlackRock Financial Management has priced three CLO deals over the year, including the $408.83 million Magnetite IX, Ltd. transaction on June 13.
The investment management firm is based in New York City.
| Issuer: | Magnetite XI, Ltd./Magnetite XI LLC
|
| Amount: | $561 million
|
| Maturity: | Dec. 18, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | BlackRock Financial Management, Inc.
|
| Call feature: | Two years
|
| Pricing date: | Dec. 4
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $349.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $63.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B notes
|
| Amount: | $30.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C notes
|
| Amount: | $33 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class D notes
|
| Amount: | $30.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 515 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity tranche
|
| Amount: | $53.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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