CIFC prices $813.4 million CLO; Greywolf raises $455.3 million; near-term spreads eyed

By Cristal Cody

Tupelo, Miss., Aug. 27 – The CLO primary market remains active despite a summer slowdown seen in other financial markets in late August.

CIFC CLO Management II LLC priced $813.4 million of notes in the CLO manager’s fourth new CLO offering of the year.

Also, details emerged on Greywolf Capital Management LP’s $455.3 million of notes that priced in the manager’s second new CLO transaction of 2018.

Year to date, $82 billion of broadly syndicated and middle-market CLOs have priced, according to a BofA Merrill Lynch analysts’ note released on Monday.

“Tiering remains apparent at the triple-A level with BSL DMs ranging from 115 [basis points plus Libor] to 123 [bps plus Libor],” the analysts said. “Further down the stack, BBB DMs printed in the 305-335 [bps] range while BB DMs printed in the 565 [bps plus Libor]to 620 [bps plus Libor] range. We expect spreads to remain stable during this final stretch of summer.”

In its deal, CIFC CLO Management II priced $813.4 million of notes due Oct. 17, 2031 in the CIFC Funding 2018-IV, Ltd./CIFC Funding 2018-IV, LLC transaction.

The CLO sold $512 million of class A-1 senior secured floating-rate notes at Libor plus 115 bps and $95 million of class A-2 senior secured floating-rate notes at Libor plus 170 bps in the senior tranches.

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