CIFC CLO prices $815.8 million; CIFC refinances; high-grade refinanced tranches ‘best value’

By Cristal Cody

Tupelo, Miss., Feb. 14 – CIFC Asset Management LLC and an affiliate priced and refinanced CLOs.

CIFC CLO Management LLC priced $815.8 million of notes in a new deal.

CIFC Asset Management refinanced $656 million of notes in a vintage 2014 CLO transaction.

New CLO volume totals nearly $4 billion year to date compared to more than $14 billion of vintage U.S. CLOs refinanced year to date, according to market sources.

Refinanced CLOs are “the best value in investment-grade (AAA-A) tranches, as investors only give up 12 [basis points]-15 bps of spread for a bond three years shorter, and benefit from a steeper roll in the shorter end of the curve,” Wells Fargo Securities LLC senior analyst Dave Preston and associate analysts Geoff Horton and Mackenzie Miller said in a note released on Tuesday.

CIFC CLO Management prices

CIFC CLO Management priced $815.8 million of notes in the CIFC Funding 2017-I Ltd./CIFC Funding 2017-I LLC transaction, according to a market source.

The CLO sold $503.6 million of class A senior secured floating-rate notes at Libor plus 136 bps in the senior tranche.

Deutsche Bank Securities Inc. was the placement agent.

The CLO, collateralized mainly by senior secured loans, is non-callable until April 21, 2019.

The notes are due April 21, 2029.

CIFC Asset Management is a New York-based credit manager.

CIFC refinances $656 million

CIFC Asset Management refinanced $656 million of notes due May 24, 2026 in the CIFC Funding 2014-II Ltd. CLO transaction, according to a market source.

CIFC Funding 2014-2 priced $504 million of class A-1L-R floating-rate notes at par to yield Libor plus 120 bps at the top of the deal structure.

Citigroup Global Markets Inc. arranged the deal.

The CLO, collateralized mainly by senior secured loans, has a two-year non-call period and a four-year reinvestment period.

Proceeds will be used to redeem the original notes.

CIFC Asset Management is a New York-based credit manager.

© 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.