CIFC, BlackRock, Cutwater, Oaktree price; BlueMountain AAAs tighter than talk

By Cristal Cody

Tupelo, Miss., Dec. 15 – CIFC Asset Management LLC tapped the CLO primary market with a $559.9 million offering in the firm’s fifth deal of the year, according to a market source on Monday.

CIFC Funding 2014-V, Ltd./CIFC Funding 2014-V, LLC sold $307 million of class A-1 floating-rate notes at Libor plus 158 basis points at the top of the capital structure and $11 million of class F floating-rate notes at Libor plus 655 bps at the bottom of the capital stack.

December CLO issuance also includes deals from BlueMountain Capital Management LLC, Cutwater Investor Services Corp., BlackRock Financial Management, Inc. and Oaktree Capital Management, LP, although primary action for the month remains low, according to market sources.

“CLO supply in December has been light [at $3.4 billion in seven deals],” J.P. Morgan Securities LLC analysts said in a note. “With the second half of the month seasonally slow due to the holidays, December could end up being one of the lightest months since January 2014.”

Year to date, CLO issuance has climbed to more than $152 billion in transactions priced in the U.S. and European primary markets, according to data compiled by Prospect News.

In the secondary market, U.S. and European CLO spreads were flat from the previous week, according to JPMorgan.

U.S. BBB notes were unchanged at Libor plus 310 bps. Euro-denominated BBB CLO notes were flat at Euribor plus 320 bps.

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