By Cristal Cody
Tupelo, Miss., Feb. 25 – BlackRock Financial Management, Inc. priced $608.83 million of notes due April 15, 2027 in a collateralized loan obligation offering, according to a market source.
Magnetite XII, Ltd./Magnetite XII LLC sold $386.4 million of class A senior secured floating-rate notes at Libor plus 150 basis points at par; $63.6 million of class B senior secured floating-rate notes at Libor plus 225 bps at 99.6591; $39 million of class C deferrable floating-rate notes at Libor plus 325 bps at 98.9832; $34.5 million of class D deferrable floating-rate notes at Libor plus 425 bps at 96.0211; $30 million of class E deferrable floating-rate notes at Libor plus 675 bps at 90.1643; $10.5 million of class F deferrable floating-rate notes at Libor plus 850 bps at 88.3098 and $44.83 million of subordinated notes.
Wells Fargo Securities, LLC was the placement agent.
BlackRock Financial Management will manage the CLO.
The CLO has a four-year reinvestment period and a non-call period that ends in October 2016.
The deal is backed primarily by first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a portfolio of about $600 million of mostly senior secured leveraged loans.
BlackRock Financial Management, a New York City-based investment management firm, brought three CLO deals in 2014.
| Issuer: | Magnetite XII, Ltd./Magnetite XII LLC
|
| Amount: | $608.83 million
|
| Maturity: | April 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Wells Fargo Securities, LLC
|
| Manager: | BlackRock Financial Management, Inc.
|
| Call feature: | October 2016
|
| Pricing date: | Feb. 6
|
| Settlement date: | March 12
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $386.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $63.6 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Price: | 99.6591
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $39 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 325 bps
|
| Price: | 98.9832
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $34.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 425 bps
|
| Price: | 96.0211
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $30 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Price: | 90.1643
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $10.5 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 850 bps
|
| Price: | 88.3098
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $44.83 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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