CIFC refinances $290.3 million, first deal of 2015; activity thin; CVC, Apollo market CLOs

By Cristal Cody

Tupelo, Miss., Jan. 12 – CIFC Asset Management LLC refinanced $290.3 million of notes in a vintage 2011 CLO deal, though new issuance remains at a standstill year to date, according to market sources on Monday.

“It’s not a new deal, but it seems to be the only thing that’s actually priced so far,” one source said. “There should be some issuance; it’s just a matter of when.”

Several CLO managers, including CVC Credit Partners, LLC, PineBridge Investments LLC and Apollo Credit Management (CLO) LLC, are expected to bring CLO offerings over the next few weeks, sources said.

CLO market activity has been quiet in January, in part affected by risk retention regulations and the drop in oil and gas prices, sources report.

Although the crunch in the energy sector mostly has impacted high-yield bonds, “it is scaring away” some CLO managers from tapping the market this month, a source said.

CIFC Asset Management refinanced $290.3 million of notes in two tranches of the vintage CIFC Funding 2011-I, Ltd./CIFC Funding 2011-I, LLC CLO transaction, according to market sources and a proposed supplemental indenture filing.

The CLO refinanced $275.3 million of class A-1 senior secured floating-rate notes at Libor plus 130 basis points and $15 million of class A-2 senior secured floating-rate notes at Libor plus 210 bps.

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