BlackRock plans €474 million refinancing and reset of 2016 CLO; secondary trading thin

By Cristal Cody

Tupelo, Miss., Feb. 27 – The European CLO market is beginning to see more deal activity in 2018 following steady issuance in 2017.

BlackRock Investment Management (UK) Ltd. plans to price €474 million of notes in a refinancing and reset of a vintage 2016 CLO.

Nearly €3 billion of euro-denominated CLOs have priced year to date, according to BofA Merrill Lynch.

In other activity, secondary trading was too thin to register on Monday in both high-grade and lower-rated CBO/CDO/CLO issues, according to Trace data.

In its deal, BlackRock Investment Management (UK) plans to price €474 million of notes in a refinancing and reset of the BlackRock European CLO I DAC transaction, which was originally issued on Feb. 25, 2016, according to a market source.

The deal includes €266 million of class A-R floating-rate notes (Aaa/AAA); €39.68 million of class B-1-R senior secured floating-rate notes (Aa2/AA); $26.32 million of class B-2-R senior secured fixed-rate notes (Aa2/AA); €32 million of class C-R senior secured deferrable floating-rate notes (A2/A); €24 million of class D-R senior secured deferrable floating-rate notes (Baa2/BBB); €25.5 million of class E-R senior secured deferrable floating-rate notes (Ba2/BB-); €10.5 million of class F-R senior secured deferrable floating-rate notes (B2/B-) and €50 million of subordinated notes.

Credit Suisse Securities (Europe) Ltd. is the refinancing placement agent.

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