BlackRock Financial Management offers $506.5 million Magnetite XVI CLO

By Cristal Cody

Tupelo, Miss., Dec. 2 – BlackRock Financial Management, Inc. intends to price $506.5 million of notes in the firm’s fourth collateralized loan obligation transaction of 2015, according to a market source.

The Magnetite XVI, Ltd./Magnetite XVI LLC deal is expected to include $320 million of class A floating-rate notes (//AAA); $60 million of class B floating-rate notes; $11,579,000 of class C-1 floating-rate notes; $18,171,000 of class C-2 floating-rate notes; $25.25 million of class D floating-rate notes; $25 million of class E floating-rate notes and $46.5 million of subordinated notes.

Credit Suisse Securities (USA) LLC will arrange the offering.

BlackRock Financial Management is the CLO manager.

The CLO will have a two-year non-call period and a four-year reinvestment period.

The transaction is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.

BlackRock Financial Management was previously in the CLO primary market on Oct. 20 with the Magnetite XV, Ltd./Magnetite XV LLC transaction.

The CLO manager has priced three new CLOs and refinanced one vintage 2012 CLO year to date.

The New York City-based investment management firm placed three CLO deals in 2014.

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