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BlackRock adds to March pipeline for euro CLOs

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BlackRock Investment Management (UK) is launching the fourth new-issue euro-denominated CLO of March, according to presale reports published Tuesday.

The triple-A-rated tranche of the €413.5 million BlackRock European CLO V transaction will be priced at 0.75% above the negative three-month/six-month Euribor rate, according to Moody’s Investors Service and Fitch Ratings.

The deal will add to total pricings of €1.3 billion of new European CLO deals this month by the Carlyle Group’s CELF Advisors, Brigade Capital Europe Management and PGIM.

The €400 million loan portfolio adds to the €1.7 billion of AUM for BlackRock Investment Management (BIM) - the European CLO manager affiliate of the $6.28 trillion-asset BlackRock, Inc. The deal will be its fifth overall European CLO post-crisis transaction.

BlackRock V is launching with an identified portfolio of €335.1 million, a weighted average spread of 3.67% and a weighted average life of 6.1 years.

The loan portfolio has a high concentration of high-tech industries (12.98%), chemicals/plastics and rubber (10.14%) and hotel/gaming and leisure (10.04%).

Through both BIM and BlackRock's U.S. CLO affiliate (BlackRock Financial Management), BlackRock had $7.52 billion in CLO assets under management.

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CLOs CDOs Europe