CIFC refinances $430 million CLO; refinancing ‘flurry’ to continue as risk retention looms

By Cristal Cody

Eureka Springs, Ark., Oct. 27 – CIFC Asset Management LLC refinanced $430 million of notes in a vintage 2012 CLO offering, and more managers are expected to refinance existing CLOs before the year ends, according to market sources on Thursday.

Fitch Ratings said in a news release on Thursday that the refinancing “flurry” along with new issuance is expected to remain strong ahead of the Dec. 24 risk retention requirements deadline.

“The flurry of new CLOs coming to market will continue and may increase further as the deadline for risk retention nears,” Fitch managing director Derek Miller said in the release. “New CLO issuance through early 2017 will also be worth watching to see how the new deals are risk retention-compliant.”

More than $13 billion of CLOs have been refinanced year to date, according to BofA Merrill Lynch.

CIFC refinances 2012-III CLO

CIFC Asset Management refinanced $430 million of notes due Jan. 29, 2025 in the CIFC Funding 2012-III, Ltd./CIFC Funding 2012-III, LLC transaction, according to a market source.

CIFC Funding priced $320 million of class A-1-R floating-rate notes at Libor plus 120 basis points in the senior tranche.

BNP Paribas Securities Corp. was the refinancing agent.

Proceeds from the refinancing will be used to redeem the original notes.

CIFC Asset Management is a New York-based credit manager.

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