CIFC prices manager’s sixth CLO deal of year; CLO spreads tighten in secondary trading

By Cristal Cody

Tupelo, Miss., Dec. 16 – CIFC Asset Management LLC priced $403.2 million of notes in a new broadly syndicated CLO offering in December.

The deal is the manager’s sixth new CLO transaction priced this year.

Dollar-denominated volume is slowing in December with just one transaction priced last week in the primary market, bringing year-to-date supply to $110 billion, according to a BofA global research note released on Monday.

Euro-denominated supply already has posted an all-time deal tally with nearly €30 billion of issuance year to date, the note said.

Elsewhere, the CLO secondary market was active with $427 million of U.S. CLO BWIC volume in the past week, according to the BofA report.

Spreads ended Friday tighter across the CLO stack with BBB and BB bonds 25 basis points tighter on discount margins. CLO AAA- through A-rated tranches traded 2 bps to 15 bps tighter on average, the BofA note said.

“That said, most of the improvements were observed in upper tier managers with strong deal stats,” BofA analysts said.

CIFC prices $403.2 million

CIFC Asset Management priced $403.2 million of notes due Jan. 16, 2033 in the CIFC Funding 2019-VI, Ltd. broadly syndicated CLO offering, according to market sources.

The CLO sold $244 million of class A-1 floating-rate notes at Libor plus 133 bps at the top of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

The offering is backed primarily by broadly syndicated first lien senior secured loans.

The investment adviser is based in New York.

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