...Black Diamond CLO 2019-2, Ltd. Reset (the issuer) is an arbitrage cash flow collateralized loan obligation (CLO) that will be managed by Black Diamond CLO 2019-2 Adviser, L.L.C.. Net proceeds from the issuance of the secured and subordinated notes will provide financing on a portfolio of approximately $400 million of primarily first-lien senior secured leveraged Asset Credit Quality: The average credit quality of the indicative portfolio is 'B+/B', which is in line with that of recent CLOs. The weighted average rating factor (WARF) of the indicative portfolio is 23.19, and will be managed to a WARF covenant from a Fitch test matrix. Issuers rated in the 'B' rating category denote a highly speculative credit quality; however, the notes benefit from appropriate credit enhancement and standard U.S. CLO structural features. Asset Security: The indicative portfolio consists of 95% first-lien senior secured loans. The weighted average recovery rate (WARR) of the indicative portfolio is 72.53%...
