Ares brings third CLO deal; CIFC closes on 2015-IV CLO, draws 25 institutional investors

By Cristal Cody

Tupelo, Miss., Sept. 18 – Activity in the CLO market remained light on Friday following the Federal Reserve’s decision to keep rates low. Meanwhile, details emerged on a new offering from Ares Management LLC.

“The Fed’s decision to not raise rates yesterday has worldwide implications, and the loan and CLO markets are not exceptions,” Barclays Bank plc analysts said in a note on Friday. “Therefore, the eventual hike is likely to be a positive for the broader market, which has been range bound as of late.”

In the primary market, Ares Management sold $406.43 million of 10-year notes in a new CLO deal.

In other activity on Friday, CIFC Corp. announced it closed on the $512.8 million CIFC Funding 2015-IV, Ltd./CIFC Funding 2015-IV, LLC transaction priced via Citigroup Global Markets Inc. in August.

The deal was “supported by 25 institutional investors, including some first-time investors with CIFC,” the company said in a release.

The CLO sold $287.2 million of class A-1a floating-rate notes at Libor plus 144 basis points at the top of the capital structure.

Meanwhile, Ares Management sold $406.43 million of notes due Oct. 15, 2025 in the Ares XXXV CLO, Ltd./Ares XXXV CLO, LLC offering, according to a market source.

The CLO priced $271 million of class A senior secured floating-rate notes at Libor plus 132 bps in the senior tranche.

Deutsche Bank Securities Inc. arranged the deal.

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