CIFC prices €407.5 million CLO; Fortress returns with new issue; refinancing volume eyed

By Cristal Cody

Tupelo, Miss., July 1 – CIFC Asset Management LLC brought a debut €407.5 million European CLO to the primary market on Monday.

CIFC Asset Management previously tapped the dollar-denominated primary market in June with the $510.6 million CIFC Funding 2019-IV, Ltd. broadly syndicated CLO deal, which settles July 17.

In other new issuance, Fortress Investment Group LLC sold $451.75 million of notes in its first broadly syndicated CLO offering this year.

New issue supply in the first half of the year for the CLO market “lagged” compared to 2017 and 2018 and is expected to slow in the second half with a light loan supply on tap and tighter loan spreads, according to a BofA analysts’ research note released on Monday.

Refinancing activity, though, is expected to see a moderate pace increase.

Year to date, about $62 billion of new issue CLOs have priced, while about $22 billion of vintage CLOs have been refinanced, reset or reissued, according to the report.

“We maintain our full year issuance forecasts of $105 [billion] for new issue and $55 [billion] for refis/resets/reissues, which implies a slowdown in the rate of issuance of the former and an acceleration in volume for the latter,” the BofA analysts said.

© 2015 Prospect News.
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