Anchorage prices €411.28 million CLO; BlackRock prints; secondary mezzanine volume thin

By Cristal Cody

Tupelo, Miss., Oct. 16 – Anchorage Capital Group, LLC priced €411.28 million of notes in the new Anchorage Capital Europe CLO 3 DAC transaction.

In other market action, Spire Partners LLP closed Wednesday on its previously reported €271.5 million refinancing of notes from the vintage 2017 Aurium CLO III DAC transaction.

The CLO sold €220 million of the class A-R senior secured floating-rate notes at Euribor plus 67 basis points, compared to where the original €220 million tranche of class A notes was issued May 12, 2017 at Euribor plus 88 bps.

Year to date, euro-denominated CLO volume totals more than €22 billion with the market forecast to post €30 billion of volume for the year, according to a Wells Fargo Securities LLC research note.

In the dollar-denominated primary market, BlackRock Financial Management, Inc. priced a $522.5 million CLO.

Dollar-denominated CLO volume totals more than $89 billion year to date.

Elsewhere, secondary trading volume continues to remain thin in lower-rated tranches with market sources reporting weaker demand in October.

On Tuesday, $224.61 million of high-grade CBO/CDO/CLO issues were traded, while just $37.33 million of non-investment-grade securities traded in the securitized secondary market, according to Trace data.

The high-grade securities had an average trading price of 99.00 on Tuesday. The non-high-grade CBO/CDO/CLO issues traded with an average price of 89.70.

Anchorage Capital prices

Anchorage Capital Group priced €411.28 million of notes due July 15, 2032 in the Anchorage Capital Europe CLO 3 deal via Barclays, according to market sources.

The CLO sold €248 million of class A senior secured floating-rate notes at Euribor plus 92 bps in the AAA-rated tranche.

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

Anchorage Capital Group is an asset manager based in New York City.

BlackRock brings CLO

BlackRock Financial Management sold $522.5 million of notes due Oct. 25, 2032 in its new CLO deal, according to market sources.

Magnetite XXIII, Ltd./Magnetite XXIII LLC priced $330.7 million of class A floating-rate notes at Libor plus 130 bps at the top of the capital stack.

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

The deal is collateralized mostly by broadly syndicated first-lien senior secured loans.

BlackRock is an investment management firm based in New York City.

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