Eaton Vance prices $403.23 million CLO; Black Diamond refinances; euro CLO AAAs tight

By Cristal Cody

Tupelo, Miss., Oct. 22 – New CLO pricing action remains strong in October.

Eaton Vance Management priced $403.23 million of notes in the manager’s second broadly syndicated CLO offering of the year.

Meanwhile, refinancing of fixed-rate tranches also continues in the CLO space.

Black Diamond Capital Management, LLC priced $55 million of notes in a partial refinancing of three fixed-rate tranches from a 2017 CLO.

In other activity on Thursday, several managers closed on previously reported CLO deals.

Redding Ridge Asset Management (UK) LLP wrapped its €394 million RRE 5 Loan Management DAC offering, which placed €232 million of class A-1 senior secured floating-rate notes at Euribor plus 110 basis points.

BlackRock Financial Management, Inc. closed on its $404.85 million Magnetite XXVIII, Ltd./Magnetite XXVIII LLC deal. The CLO sold $252 million of class A floating-rate notes at Libor plus 127 bps.

In addition, Cerberus Capital Management, LP settled its $431.1 million middle-market CLO offering, Cerberus Loan Funding XXVIII LP, on Thursday. The CLO priced $223.6 million of the class A senior secured floating-rate notes at Libor plus 185 bps.

New issue volume year to date includes more than $60 billion of broadly syndicated CLO issuance and over $6 billion of middle-market supply, according to market sources.

About $30 billion of CLO notes have been refinanced this year.

In October, broadly syndicated CLO AAAs are printing on average at Libor plus 130 bps, while euro-denominated AAAs are pricing at an average Euribor plus 112 bps, according to a Wells Fargo Securities, LLC report.

In the refinancing space, CLO AAA tranches also are printing at a Libor plus 130 bps average.

New issue middle-market CLO AAA tranches are pricing in October at an average Libor plus 190 bps spread, according to the note.

Eaton Vance brings CLO

Eaton Vance Management priced $403,225,000 of notes due Oct. 15, 2032 in the CLO deal, according to market sources.

Eaton Vance CLO 2020-2 Ltd./Eaton Vance CLO 2020-2, LLC sold $216 million of class A-1 floating-rate notes at Libor plus 137 bps at the top of the capital stack.

Wells Fargo Securities, LLC was the placement agent.

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

Boston-based Eaton Vance Management is a subsidiary of Eaton Vance Corp.

Black Diamond reprices

Black Diamond Capital Management priced $55 million of notes due April 24, 2029 in a partial refinancing of the Black Diamond CLO 2017-1, Ltd./Black Diamond CLO 2017-1, LLC transaction, according to a revised proposed first supplemental indenture.

The CLO sold $15 million of 2.5% class A-1b-R senior secured fixed-rate notes (expected ratings Aaa) in the senior tranche.

The CLO notes were originally issued on May 23, 2017. In that offering, Black Diamond sold $15 million of 3.31% class A-1b fixed-rate notes.

Goldman Sachs & Co. LLC was the refinancing agent.

Black Diamond CLO 2017-1 Adviser, LLC is the CLO manager.

The CLO is backed mainly by broadly syndicated senior secured corporate loans.

Black Diamond is an alternative asset management firm with locations in Greenwich, Conn., London and St. Thomas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.