BlueMountain refinances 2014 CLO second time; high-grade issues improve in secondary

By Cristal Cody

Tupelo, Miss., Oct. 24 – BlueMountain Capital Management LLC priced $574.9 million of notes in a second refinancing of a 2014 CLO offering that closed on Monday.

The vintage BlueMountain CLO 2014-2 Ltd./BlueMountain CLO 2014-2 LLC transaction included $328.5 million of class A-1-R2 floating-rate notes, which priced at Libor plus 113 basis points at the top of the capital structure.

More than $130 billion of dollar-denominated CLOs have been refinanced year to date, according to market sources.

About $160 billion to $170 billion of CLO refinanced volume is expected by market sources for the year.

Elsewhere, investment-grade issues improved in the secondary market.

On Tuesday, $166.64 million of high-grade CBO/CDO/CLO issues and $155.53 million of lower-rated securities traded, according to Trace data.

The average price for the investment-grade securities was par, while the mezzanine tranches traded at an average price 88.00.

In the same period a week ago, $205.89 million of high-grade CBO/CDO/CLO issues were traded along with $98.87 million of lower-rated securities, according to Trace data.

The high-grade CBO/CDO/CLO securities traded with an average price of 96.20 and the non-investment-grade issues saw an average trading price of 91.10.

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