BlackRock in deal pipeline with €413.5 million CLO; Monroe sees strong demand for CLO

By Cristal Cody

Tupelo, Miss., March 20 – The European CLO primary market is expected to see more activity in new issuance and refinancings, sources report.

BlackRock Investment Management (UK) Ltd. is marketing a new €413.5 million transaction.

European CLO refinancing and reset deal activity is expected to pick up in the coming weeks after thin issuance since February, according to a BofA Merrill Lynch research note.

In other activity, Monroe Capital LLC announced in a release on Tuesday that it closed on its previously reported $456.3 million middle-market CLO transaction. The Monroe Capital MML CLO VI, Ltd./Monroe Capital MML CLO VI, LLC deal had priced the $252 million tranche of class A floating-rate notes at Libor plus 145 basis points.

Deutsche Bank Securities Inc. arranged the Rule 144A and Regulation S transaction.

The deal saw “strong demand,” Jeremy VanDerMeid, managing director of Monroe, said in the release.

Monroe Capital said the term financing was its second CLO completed in the last 12 months and is secured by a portfolio of middle-market senior secured loans.

The firm and its affiliates retained a majority of the subordinated notes in the deal, which was structured to comply with U.S. and European risk retention guidelines.

“Our investor base continues to expand in the U.S., Europe and Asia,” Ted Koenig, president and chief executive officer of Monroe, said in the press release.

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