Banc of America Securities priced the notes backing BlackRock Financial Management's latest collateralized loan obligation last week. According to market sources, the $350 million Magnetite V was increased from $300 million. The $270 million triple-A notes priced at LIBOR plus 54 basis points, which continues the trend of tighter pricing on the liabilities of the top-rated tranches of CLOs. The $20 million single-A tranche priced at LIBOR plus 150 basis points, which is about 10 basis points tighter than marketing talk, according to a source. The $19 million triple-B tranche is priced at LIBOR plus 285 basis points. An $11 million double-B tranche is priced at LIBOR plus 800 basis points.
Prior to Magnetite V, BlackRock had funded a series of five leveraged finance CDOs, including two market value collateralized bond obligations (CBOs), two cash flow high-yield CBOs and one CLO, which together totaled $2.6 billion. Mark Williams, the bank loan portfolio manager and member of the investment strategy group for BlackRock, did not return calls.