CLO volume hits nearly $16.5 billion; Black Diamond sells firm’s first U.S. CLO since 2014

By Cristal Cody

Eureka Springs, Ark., May 17 – U.S. dollar-denominated CLO volume has risen to nearly $16.5 billion from 40 deals year to date, according to market sources and Prospect News data.

In new deal details, Black Diamond Capital Management, LLC raised $359.6 million in the firm’s first U.S. broadly syndicated CLO offering since 2014.

Black Diamond prices

Black Diamond Capital Management priced $359.6 million of note due May 18, 2028 in the CLO deal that is scheduled to close on Wednesday, according to a market source.

Black Diamond CLO 2016-1, Ltd. sold $193.5 million of class A-1a senior secured floating-rate notes at Libor plus 165 basis points, $20 million of 2.95% class A-1b senior secured fixed-rate notes, $37.5 million of class A-2a senior secured floating-rate notes at Libor plus 265 bps and $11.5 million of 4.23% class A-2b senior secured fixed-rate notes at the top of the capital structure.

J.P. Morgan Securities LLC was the placement agent.

Black Diamond affiliate Black Diamond CLO 2016-1 Adviser, LLC will manage the CLO.

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

The deal is backed primarily by broadly syndicated senior secured loans.

Black Diamond was last in the U.S. CLO primary market in 2014.

The alternative asset management firm is based in Greenwich, Conn.

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