By Cristal Cody
Tupelo, Miss., Dec. 7 – BlackRock Financial Management, Inc. sold $506.5 million of notes due Jan. 15, 2028 in the firm’s fourth collateralized loan obligation transaction of the year, according to a market source.
Magnetite XVI, Ltd./Magnetite XVI LLC priced $320 million of class A senior secured floating-rate notes at Libor plus 150 basis points; $60 million of class B senior secured floating-rate notes at Libor plus 225 bps; $11.58 million of class C-1 deferrable mezzanine floating-rate notes at Libor plus 310 bps; $18.17 million of class C-2 deferrable mezzanine floating-rate notes at Libor plus 300 bps; $25.25 million of class D deferrable mezzanine floating-rate notes at Libor plus 405 bps; $25 million of class E deferrable mezzanine floating-rate notes at Libor plus 635 bps and $46.5 million of subordinated notes.
Credit Suisse Securities (USA) LLC arranged the offering.
BlackRock Financial Management is the CLO manager.
The CLO has 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 offering will be used to purchase a portfolio of about $500 million of mostly senior secured leveraged loans.
BlackRock has priced four new CLOs and refinanced one vintage 2012 CLO deal year to date.
The New York City-based investment management firm brought three CLOs to market in 2014.
| Issuer: | Magnetite XVI, Ltd./Magnetite XVI LLC
|
| Amount: | $506.5 million
|
| Maturity: | Jan. 15, 2028
|
| 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. 3
|
| Settlement date: | Dec. 18
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $60 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C-1 notes
|
| Amount: | $11.58 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-2 notes
|
| Amount: | $18.17 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $25.25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 405 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 635 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $46.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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