Jefferies Finance prices $309 million JFIN MM CLO; GSO, Redan Park, Blackstone in pipeline

By Cristal Cody

Tupelo, Miss., March 26 - Details emerged Wednesday on a $309 million collateralized loan obligation transaction from Jefferies Finance LLC.

Jefferies Finance's CLO, backed primarily by small and medium enterprise and broadly syndicated first-lien senior secured corporate loans and eligible investments, priced the AAA tranche at Libor plus 160 basis points, according to a source.

Most CLOs have priced the triple A-rated securities in the Libor plus 150 bps area this year, according to market sources.

"It's all manager-dependent," one source said. "Some guys are wider than 160 [bps plus Libor] and some guys are right at 150 [bps plus Libor], but it's generally been in that range."

A number of deals remain in the pipeline, now estimated at about $16.5 billion following more than $21 billion of issuance year to date, according to market sources.

New York City-based GSO Capital Partners LP is expected to price a $400 million CLO transaction via Wells Fargo Securities LLC in early April, according to an informed source.

Redan Park Asset Management LLC's $300 million CLO deal, in the works since December, remains on the calendar, according to an informed source.

C&Co/PrinceRidge LLC is the placement agent.

Charlotte, N.C.-based Steele Creek Investment Management LLC is preparing a $350 million to $400 million CLO deal, a source said.

In the European CLO primary market, Blackstone/GSO Debt Funds Management Europe Ltd. plans to price the €412 million Holland Park CLO offering, according to an informed source.

BNP Paribas Securities Corp. is the placement agent.

Jefferies raises $309 million

CLO manager Jefferies Finance priced $309 million of notes due April 10, 2025 in the JFIN MM CLO 2014-II Ltd./JFIN MM CLO 2014-II LLC deal, according to a market source.

The CLO sold $170 million of class A senior secured delayed-draw floating-rate notes (Aaa) at Libor plus 160 bps; $24 million of class B senior secured delayed-draw floating-rate notes (Aa2) at Libor plus 215 bps; $22.5 million of class C secured deferrable floating-rate notes at Libor plus 266 bps; $18 million of class D secured deferrable floating-rate notes at Libor plus 335 bps; $22.5 million of class E secured deferrable floating-rate notes at Libor plus 650 bps and $52 million of subordinated notes.

Jefferies LLC arranged the transaction.

Jefferies Finance was last in the market in February with the $522.2 million JFIN CLO 2014 Ltd./JFIN CLO 2014 LLC transaction.

New York City-based Jefferies Finance is a commercial finance firm co-owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

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