CIFC in deal pipeline; primary ramps up; Credit Suisse Asset sells AAAs at 145 bps spread

By Cristal Cody

Tupelo, Miss., Feb. 4 - The collateralized loan obligation market got off to a slow start in 2014, but primary activity is expected to ramp up following a spate of deals, according to informed sources.

"We had a few awkward weeks at the first of the year where there were people out [for holidays, industry conference events and winter weather storms]," one source said. "People just haven't been in the office and focused on work long enough to build momentum. But now it's feeling better, and there will be a continuation of the activity we've seen in recent days."

CIFC Asset Management LLC is expected to price $500 million to $600 million of notes in a CLO offering later in the week, an informed source said on Tuesday.

On Monday, Credit Suisse Asset Management, LLC priced the $746.04 million Madison Park Funding XIII Ltd./Madison Park Funding XIII LLC deal, bringing the AAA portion at Libor plus 145 basis points, according to an informed source.

CIFC plans deal

CIFC Asset Management plans to price the CIFC Funding 2014 CLO deal via Credit Suisse Securities (USA) LLC, according to an informed source.

CIFC Asset Management will manage the CLO.

The CLO manager priced four U.S. CLOs in 2013, including the $516.6 million CIFC Funding 2013-I, Ltd. deal, the $649.65 million CIFC Funding 2013-II, Ltd. offering, the $418 million CIFC Funding 2013-III, Ltd. transaction and the $522.5 million CIFC Funding 2013-IV Ltd. vehicle.

New York City-based CIFC Asset Management is a subsidiary of CIFC Corp.

Credit Suisse Asset deal eyed

Credit Suisse Asset Management priced $746.04 million of notes due Jan. 20, 2025 in the Madison Park Funding XIII CLO transaction via BofA Merrill Lynch, according to an informed source.

The CLO priced $2.8 million of class X senior secured floating-rate notes (//AAA) at Libor plus 100 bps; $449.49 million of class A senior secured floating-rate notes (//AAA) at Libor plus 145 bps; $71.25 million of class B-1 senior secured floating-rate notes at Libor plus 215 bps and $28.75 million of 4.29% class B-2 senior secured fixed-rate notes.

The CLO also priced $32.75 million of class C deferrable floating-rate notes at Libor plus 275 bps; $45.25 million of class D deferrable floating-rate notes at Libor plus 335 bps; $38 million of class E deferrable floating-rate notes at Libor plus 500 bps; $17.25 million of class F deferrable floating-rate notes at Libor plus 585 bps and $60.5 million of subordinated notes.

Credit Suisse Asset Management will manage the CLO.

Proceeds will be used to purchase a portfolio of about $719.3 million of leveraged loans.

Credit Suisse Asset Management, a unit of Credit Suisse Group AG, was last in the U.S. CLO market in 2013 with the $521.5 million Madison Park Funding XI, Ltd./Madison Park Funding XI, LLC deal that closed on Sept. 19.

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