By Cristal Cody
Tupelo, Miss., April 5 – CIFC Asset Management LLC sold $587.5 million of notes due April 20, 2030 in the CIFC Funding 2017-II Ltd. collateralized loan obligation transaction, according to a market source.
The CLO priced $4 million of class X senior secured floating-rate notes at Libor plus 80 basis points; $362.25 million of class A senior secured floating-rate notes at Libor plus 124 bps; $69 million of class B senior secured floating-rate notes at Libor plus 155 bps; $38.75 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 235 bps; $33 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 350 bps and $26 million of class E junior secured deferrable floating-rate notes at Libor plus 595 bps.
The deal included $51.5 million of equity 1 notes and $3 million of equity 2 notes.
Morgan Stanley & Co. LLC arranged the offering.
CIFC CLO Management LLC, an affiliate of CIFC Asset Management, is the CLO manager.
The notes have a two-year non-call period and a five-year reinvestment period.
The CLO is collateralized mainly by broadly syndicated first-lien senior secured corporate loans.
Proceeds will be used to purchase a $500 million portfolio of primarily first-lien senior secured leveraged loans.
CIFC Asset Management has priced two new CLOs year to date.
The credit manager is based in New York.
| Issuer: | CIFC Funding 2017-II Ltd.
|
| Amount: | $587.5 million
|
| Maturity: | April 20, 2030
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | CIFC CLO Management LLC
|
| Pricing date: | March 28
|
| Settlement date: | April 20
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
|
| Amount: | $4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 80 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A notes
|
| Amount: | $362.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 124 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $69 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 155 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $38.75 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 235 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $33 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $26 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 595 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity 1
|
| Amount: | $51.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
|
| Equity 2
|
| Amount: | $3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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