BlackRock Returns With Magnetite Series

BlackRock Financial Management is returning to the CDO market with Magnetite V, a $300 million leveraged-loan backed collateralized debt obligation. Bank of America is the lead underwriter, as BlackRock, the asset management arm of PNC Bank, seeks to complete another deal in the Magnetite series. BlackRock has 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.

One CDO analyst said U.S. issuance year-to-date has been dominated by higher quality structured finance and leveraged loan deals, and repeat managers. BlackRock works with private equity firm Kelso & Co. for the Magnetite deals. Officials at Kelso referred calls to Dennis Schaney, managing director and fund manager at BlackRock, who was unable to return calls by press time. Mark Williams, the bank loan portfolio manager and member of the investment strategy group, also did not return calls. Timing for pricing of the notes could not be ascertained.