CIFC to bring its first risk retention-compliant CLO by end of 2015

By Cristal Cody

Tupelo, Miss., Aug. 7 – CIFC Corp. said on Friday in its second-quarter earnings release that it plans to price its first risk retention-compliant CLO deal before the end of the year.

“Risk retention requirements for the CLO market are creating attractive investment opportunities which we have begun to exploit in our structured product business,” the company said in the release.

“During the past quarter, we allocated our capital to good relative value opportunities across CLO debt and equity while reducing our risk exposure in warehouse investments.”

CIFC said that for the quarter ended June 30, it sponsored the issuance of one new CLO that represented about $500 million of new loan-based assets under management.

“The CLO market continues to be strong,” the company said in the release. “We successfully closed three new CLOs raising $1.6 billion of new AUM year to date. During the past quarter, we executed what we believe to be the largest refinancing of a 2.0 CLO in the U.S. market.”

Subsidiary CLO manager CIFC Asset Management LLC priced the $515.7 million CIFC Funding 2015-III, Ltd./CIFC Funding 2015-III, LLC deal on June 23.

CIFC refinanced $662 million of notes due Dec. 5, 2024 in the vintage CIFC Funding 2012-II, Ltd. transaction on May 29.

The New York-based credit manager priced four 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.