CIFC refinances $290.3 million, first deal of 2015; activity thin; CVC, Apollo market CLOs

By Cristal Cody

Tupelo, Miss., Jan. 12 – CIFC Asset Management LLC refinanced $290.3 million of notes in a vintage 2011 CLO deal, though new issuance remains at a standstill year to date, according to market sources on Monday.

“It’s not a new deal, but it seems to be the only thing that’s actually priced so far,” one source said. “There should be some issuance; it’s just a matter of when.”

Several CLO managers, including CVC Credit Partners, LLC, PineBridge Investments LLC and Apollo Credit Management (CLO) LLC, are expected to bring CLO offerings over the next few weeks, sources said.

CLO market activity has been quiet in January, in part affected by risk retention regulations and the drop in oil and gas prices, sources report.

Although the crunch in the energy sector mostly has impacted high-yield bonds, “it is scaring away” some CLO managers from tapping the market this month, a source said.

“People are scared of oil and gas,” the source said. “We widened out in December, but there’s been no new issues and there hasn’t been a lot of secondary trading.”

CIFC refinances vintage CLO

CIFC Asset Management refinanced $290.3 million of notes in two tranches of the vintage CIFC Funding 2011-I, Ltd./CIFC Funding 2011-I, LLC CLO transaction, according to market sources and a proposed supplemental indenture filing.

The CLO refinanced $275.3 million of class A-1 senior secured floating-rate notes at Libor plus 130 basis points and $15 million of class A-2 senior secured floating-rate notes at Libor plus 210 bps.

The notes are due Jan. 19, 2023.

Nomura Securities International Inc. was the refinancing agent.

CIFC Asset Management is the CLO manager.

Proceeds from the transaction will be used to redeem the original class A and class B notes in full on Jan. 20.

CIFC originally sold $415.23 million of notes in seven tranches in the 2011 offering.

The portfolio is backed primarily by broadly syndicated senior secured loans.

New York City-based CIFC Asset Management is a subsidiary of CIFC Corp.

CVC preps $510 million deal

CVC Credit Partners plans to price a $510 million CLO transaction in January, according to market sources.

Credit Suisse Securities (USA) LLC will arrange the Apidos CLO XX/Apidos CLO XX LLC offering.

CVC Credit Partners brought three CLO deals in 2014.

The New York City-based investment management firm is a subsidiary of London-based CVC Capital Partners Ltd.

Apollo in pipeline

Apollo Credit Management is marketing a U.S. dollar-denominated CLO offering via Morgan Stanley & Co., a source said.

Apollo Credit Management tapped the primary markets in 2014 with two European CLO offerings and two dollar-denominated CLO transactions, including the $1.54 billion ALM XIV, Ltd. deal on June 6.

The New York City-based investment management firm is a subsidiary of Apollo Global Management, LLC.

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