Bilbao CLO III DAC EUR reset via BofA priced

Bilbao CLO III DAC EUR reset via BofA priced

Bilbao CLO III DAC EUR Reset via BofA Priced
On February 13, 2026, the reset of Bilbao CLO III Debt Acquisition Company (DAC) EUR notes was priced through Bank of America (BofA), marking a key development in the collateralized loan obligation (CLO) market. The transaction, part of the ongoing management of the vehicle's reinvestment period, aligns with standard practices for CLOs to optimize portfolio performance and liquidity.

Bilbao CLO III, managed by Guggenheim Partners, follows a similar structure to its predecessor, Bilbao CLO II, which underwent a reset in February 2026 to extend its reinvestment period and adjust collateral composition. Resets are typically employed to address maturity mismatches, enhance credit quality, or respond to market conditions. While specific terms of the Bilbao CLO III reset, such as tranche sizes or pricing spreads, were not disclosed in publicly available materials, the involvement of BofA as lead underwriter underscores the transaction's significance in the European securitization market.

Rating agencies play a critical role in such resets. For instance, Fitch Ratings previously assigned final ratings to Bilbao CLO II's reset, reflecting the updated risk profile of its collateral and structural features. Although no direct ratings disclosure was provided for Bilbao CLO III's reset at the time of writing, similar agency evaluations are likely part of the process to ensure investor confidence.

The reset occurs amid a broader trend of CLO managers extending reinvestment periods and recalibrating collateral strategies to navigate evolving credit cycles. Investors are closely monitoring these actions for insights into asset-class resilience and liquidity dynamics. Further details on Bilbao CLO III's post-reset performance will emerge as the vehicle progresses through its extended operational phase.

Fitch's prior ratings actions for Bilbao CLO II provide context for standard reset evaluations.
Reference to Spglobal's regulatory article on Bilbao CLO III's note issuance.
Guggenheim's prior reset of Bilbao CLO II highlights managerial strategies in CLO lifecycle management.
Theocc's record of eligible securities on February 13, 2026, contextualizes the pricing timeline.

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