By Cristal Cody
Tupelo, Miss., Feb. 1 – BlackRock Financial Management, Inc. sold $470 million of notes due Jan. 18, 2028 in a refinancing of a 2015 vintage collateralized loan obligation deal, according to a market source and a notice of revised proposed supplemental indenture on Wednesday.
Magnetite XVI, Ltd./Magnetite XVI LLC priced $335 million of class A-R senior secured floating-rate notes at Libor plus 80 basis points; $45 million of class B-R senior secured floating-rate notes at Libor plus 120 bps; $11,579,000 of class C-1-R deferrable mezzanine floating-rate notes at Libor plus 160 bps; $18,171,000 of class C-2-R deferrable mezzanine floating-rate notes at Libor plus 160 bps; $25.25 million of class D-R deferrable mezzanine floating-rate notes at Libor plus 215 bps; $25 million of class E-R deferrable mezzanine floating-rate notes at Libor plus 500 bps and $10 million of class F deferrable mezzanine floating-rate notes at Libor plus 650 bps.
Credit Suisse Securities (USA) LLC was the placement agent.
BlackRock Financial Management will manage the CLO.
The notes have a two-year reinvestment period.
The original $506.5 million CLO was issued Dec. 18, 2015. Magnetite XVI priced $320 million of class A senior secured floating-rate notes at Libor plus 150 bps; $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.
Proceeds will be used to redeem the original notes.
BlackRock priced one new U.S. CLO and refinanced one vintage U.S. CLO in 2017.
In 2016, the CLO manager priced two new CLOs and refinanced two vintage CLOs.
The investment management firm is based in New York City.
| Issuer: | Magnetite XVI, Ltd./Magnetite XVI LLC
|
| Amount: | $470 million refinancing
|
| Maturity: | Jan. 18, 2028
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | BlackRock Financial Management, Inc.
|
| Pricing date: | Jan. 18
|
| Settlement date: | Feb. 2
|
| Distribution: | Rule 144A, Regulation S
|
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| Class A-R notes
|
| Amount: | $335 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 80 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA expected
|
|
|
| Class B-R notes
|
| Amount: | $45 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Ratings: | Moody’s: Aa2 expected
|
|
|
| Class C-1-R notes
|
| Amount: | $11,579,000
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Ratings: | Moody’s: A2 expected
|
|
|
| Class C-2-R notes
|
| Amount: | $18,171,000
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Ratings: | Moody’s: A2 expected
|
|
|
| Class D-R notes
|
| Amount: | $25.25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Ratings: | Moody’s: Baa3 expected
|
|
|
| Class E-R notes
|
| Amount: | $25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Ratings: | Moody’s: Ba3 expected
|
|
|
| Class F notes
|
| Amount: | $10 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 650 bps
|
| Ratings: | Moody’s: B3 expected
|
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