3i Debt Management brings $617.4 million CLO; deal sizes 'bigger today'; CIFC in pipeline

By Cristal Cody

Tupelo, Miss., May 28 - 3i Debt Management U.S. LLC sold an upsized $617.4 million collateralized loan obligation offering on Wednesday, according to a market source.

The firm priced the AAA-rated tranche at Libor plus 150 basis points.

The deal was upsized by nearly $100 million.

"What's really been surprising is the size of the deals that have been coming," said Mark Pibl, head of high-yield credit strategy at Canaccord Genuity Inc. "The deals are getting bigger today."

The market saw a $1 billion-plus deal price from Onex Credit Partners LLC in the previous week.

Reports that Royal Bank of Scotland Group plc plans to trim its U.S. CLO business due to requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act raised some concern in the market on Wednesday.

"To some degree, it's going to put a damper [on the market] as more players decide if it makes sense to them on the underwriter side," Pibl said.

CLO issuance has climbed to more than $44 billion to date, according to market sources.

Primary activity is expected to stay strong through June before a late summer slowdown.

"People still have one more month, and all the oars are rowing," Pibl said.

Coming up in the pipeline, CIFC Asset Management LLC plans to bring a $621.22 million CLO deal, according to a market source.

3i Debt Management upsizes

3i Debt Management sold an upsized $617.4 million CLO offering, according to a market source.

The Rule 144A-eligible deal was upsized from $515.55 million.

Jamestown CLO IV Ltd./Jamestown CLO IV Corp. priced $384 million of class A-1 floating-rate notes (//AAA) at Libor plus 150 bps; $73.8 million of class A-2 floating-rate notes at Libor plus 200 bps; $26.4 million of class B floating-rate notes at Libor plus 280 bps; $36 million of class C floating-rate notes at Libor plus 350 bps; $33.6 million of class D floating-rate notes at Libor plus 400 bps; $5.4 million of class E floating-rate notes at Libor plus 525 bps and $58.2 million of subordinated notes.

Citigroup Global Markets Inc. was the placement agent.

3i Debt Management will manage the CLO, which is backed primarily by first-lien senior secured loans.

The CLO has a two-year non-call period and a four-year reinvestment period.

The notes are due in 2026.

Proceeds from the deal will be used to purchase a portfolio of about $500 million of primarily senior secured leveraged loans.

The firm, a subsidiary of London-based 3i Group plc, was last in the primary market in November with the $515.9 million Jamestown CLO III Ltd. deal.

CIFC preps $621.22 million deal

CIFC Asset Management plans to bring a $621.22 million CLO deal, according to a source.

BNP Paribas Securities Corp. is the placement agent.

CIFC Asset Management was last in the primary market in April with the $828.59 million CIFC Funding 2014-II Ltd./CIFC Funding 2014- II LLC deal and in February with the $623 million CIFC Funding 2014 Ltd./CIFC Funding 2014 LLC transaction.

The New York City-based investment advisor is a subsidiary of CIFC Corp.

© 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.