By Cristal Cody
Tupelo, Miss., Aug. 1 – BlackRock Financial Management, Inc. sold $510.25 million of notes due July 17, 2030 in a new collateralized loan obligation deal, according to a market source.
Magnetite XIX, Ltd./Magnetite XIX LLC priced $320 million of class A senior secured floating-rate notes at Libor plus 118 basis points; $55 million of class B senior secured floating-rate notes at Libor plus 167 bps; $28.75 million of class C deferrable mezzanine floating-rate notes at Libor plus 230 bps; $30 million of class D deferrable mezzanine floating-rate notes at Libor plus 330 bps; $26.25 million of class E deferrable mezzanine floating-rate notes at Libor plus 625 bps; $7.5 million of class F deferrable mezzanine floating-rate notes at Libor plus 761 bps and $42.75 million of subordinated notes.
BofA Merrill Lynch was the placement agent.
BlackRock Financial Management will manage the CLO.
The notes have a two-year non-call period and a five-year reinvestment period.
The CLO is collateralized mainly by first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of about $500 million of primarily senior secured leveraged loans.
BlackRock has priced one new CLO and refinanced one vintage CLO year to date.
In 2016, the CLO manager priced two new CLOs and refinanced two vintage CLOs.
The investment management firm is based in New York City.
| Issuer: | Magnetite XIX, Ltd./Magnetite XIX LLC
|
| Amount: | $510.25 million
|
| Maturity: | July 17, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | BlackRock Financial Management, Inc.
|
| Call feature: | Two years
|
| Settlement date: | Aug. 10
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 118 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $55 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 167 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $28.75 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $26.25 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
|
| Amount: | $7.5 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 761 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $42.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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