Euro deal prices in CLO primary market; secondary trading volume over $1.3 billion

Chicago, Sept. 17 – The collateralized loan obligation primary marked brought some new business in a European deal that priced from Blackrock and a one-tranche refinancing.

Blackrock European CLO X DAC brought a €298.7 million six-part floating-rate transaction, which also includes a class of subordinated notes.

And, American Money Management Corp. repriced one class of notes in a third refinancing for $30 million that will be used to redeem the notes in the related class which were previously refinanced in 2018.

The secondary market had a robust day with more than $1.3 billion of CBO/CDO/CLO paper exchanging hands.

In the secondary, the majority of paper to trade was in the investment-grade tier with $886.37 million in flux. Volume on Wednesday for high-grade paper was $357.61 million.

Lower grade paper traded at a little more than half that level, at $483.39 million. This week non-investment grade securities traded with a volume of $143.13 million on Wednesday.

BlackRock Investment Management (UK) Ltd.’s new CLO is expected to be 90% ramped by the closing date for the new floating-rate CLO.

The final 10% of the portfolio will be purchased in the following seven months.

While the tranches were priced based on Euribor, the pre-sale report had not been finalized as of press time with further details on the transaction.

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