CIFC prices $513.4 million; GSO/Blackstone brings a third CLO; spreads firm on thin supply

By Cristal Cody

Tupelo, Miss., May 5 – Details emerged on new CLO deals from CIFC Asset Management LLC and GSO/Blackstone Debt Funds Management LLC, while light supply in late April and early May has helped secondary spreads, sources said.

CIFC Asset Management tapped the market with a $513.4 million transaction.

GSO/Blackstone Debt Funds Management priced $660.84 million of notes in a CLO deal.

“Amid relatively light supply and healthy demand, spread levels tightened across the capital stack by up to 10 bps to 150, 210, 310, 410 and 650,” BofA Merrill Lynch analysts said in a note of the previous week’s secondary market. “As we expect new-issue volumes to contract somewhat in the near-term on the back of decreased loan supply, we see further spread tightening potential in the 2.0 space.”

CIFC prices $513.4 million

In the primary market, CIFC Asset Management priced $513.4 million of notes due April 15, 2027 in the CIFC Funding 2015-II, Ltd./CIFC Funding 2015-II, LLC deal, a source said.

The CLO sold $325 million of class A senior secured floating-rate notes at Libor plus 145 basis points at the top of the capital structure.

Barclays was the placement agent.

CIFC Asset Management will manage the CLO.

The CLO is non-callable until Oct. 15, 2016. The reinvestment period ends April 15, 2019.

The transaction is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds from the offering will be used to purchase a portfolio of about $500 million of mainly senior secured leveraged loans.

CIFC Asset Management has priced two CLOs and refinanced a vintage 2011 CLO year to date.

The firm, a New York City-based subsidiary of CIFC Corp., brought four CLO transactions in 2014.

GSO/Blackstone prices CLO

GSO/Blackstone Debt Funds Management brought $660.84 million of notes due April 15, 2026, according to a market source.

The Stewart Park CLO Ltd./Stewart Park CLO LLC vehicle sold $393.25 million of class A senior secured floating-rate notes (Aaa/AAA/) at Libor plus 143 bps in the senior tranche.

Wells Fargo Securities LLC was the placement agent.

GSO/Blackstone is the CLO manager.

The CLO is non-callable until May 7, 2017. The reinvestment period ends Jan. 15, 2020.

The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans.

GSO/Blackstone has priced three U.S. CLOs year to date.

The New York City-based subsidiary of alternative asset manager GSO Capital Partners LP brought five U.S. CLOs in 2014.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.