By Rebecca Melvin
New York, Aug. 27 – BlueMountain Capital Management LLC has sold $612.5 million of notes due October 2026 in a collateralized loan obligation transaction, according to a market source.
BlueMountain CLO 2014-3 Ltd./BlueMountain CLO 2014-3 LLC priced $372 million of class A-1 floating-rate notes (/AAA/) at Libor plus 148 basis points; $76 million of class A-2 floating-rate notes (/AA/) at Libor plus 215 bps; $41.75 million of class B deferrable floating-rate notes (/A/) at Libor plus 305 bps; $31.7 million of class C deferrable floating-rate notes (/BBB/) at Libor plus 355 bps; $25.7 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 510 bps; $13.7 million of class E deferrable floating-rate notes (/B/) at Libor plus 565 bps; and $51.65 million of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
BlueMountain Capital Management will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The transaction is backed by broadly syndicated senior secured loans.
BlueMountain Capital Management was last in the primary market on June 5 with the $554.75 million BlueMountain CLO 2014-2 Ltd./BlueMountain CLO 2014-2 LLC and before that on March 24 with the $513.23 million BlueMountain CLO 2014-1 Ltd./BlueMountain CLO 2014-1 LLC deal.
The New York City-based private investment firm priced three CLO transactions in 2013.
| Issuer: | BlueMountain CLO 2014-3 Ltd./BlueMountain CLO 2014-3 LLC
|
| Amount: | $612.5 million
|
| Maturity: | October 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | BlueMountain Capital Management LLC
|
| Call feature: | October 2016
|
| Pricing date: | Aug. 27
|
| Settlement date: | Sept. 30
|
|
|
| Class A-1 notes
|
| Amount: | $372 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 148 bps
|
| Rating: | Standard & Poor’s: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $76 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B notes
|
| Amount: | $41.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 305 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C notes
|
| Amount: | $31.7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 355 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class D notes
|
| Amount: | $25.7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 510 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Class E notes
|
| Amount: | $13.7 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 565 bps
|
| Rating: | Standard & Poor’s: B
|
|
|
| Equity tranche
|
| Amount: | $51.65 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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