BlueMountain Capital wraps $506.15 million CLO; new issue, refinancing volume dampened

By Cristal Cody

Tupelo, Miss., March 27 – BlueMountain Capital Management LLC closed Wednesday on a new $506.15 million CLO offering.

More than $23 billion of CLOs have priced year to date, though volume remains below year-ago figures, market sources report.

Year-to-date issuance is 15% lower than in the same period a year ago, according to a Wells Fargo Securities, LLC research report on Wednesday.

“For comparison, a 15% decline in 2018 volume equates to $108 billion in full-year issuance,” Wells Fargo senior analyst Dave Preston and associate analyst Mackenzie Miller said.

Also, with thin refinancing supply so far in 2019, the “CLO market is seeing less demand from existing investors who no longer need to keep buying just to stay flat on CLO assets,” the analysts said.

In its deal, BlueMountain Capital Management closed Wednesday on the $506.15 million BlueMountain CLO XXIV Ltd./BlueMountain CLO XXIV LLC transaction, according to market sources.

The CLO sold $295 million of class A-1 floating-rate notes at Libor plus 132 basis points at the top of the capital structure.

The notes are due April 20, 2031.

BofA Merrill Lynch arranged the offering.

The issue is backed primarily by broadly syndicated senior secured corporate loans.

BlueMountain Capital Management is based in New York City.

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