CIFC CLO prices $815.8 million; CIFC refinances; high-grade refinanced tranches ‘best value’

By Cristal Cody

Tupelo, Miss., Feb. 14 – CIFC Asset Management LLC and an affiliate priced and refinanced CLOs.

CIFC CLO Management LLC priced $815.8 million of notes in a new deal.

CIFC Asset Management refinanced $656 million of notes in a vintage 2014 CLO transaction.

New CLO volume totals nearly $4 billion year to date compared to more than $14 billion of vintage U.S. CLOs refinanced year to date, according to market sources.

Refinanced CLOs are “the best value in investment-grade (AAA-A) tranches, as investors only give up 12 [basis points]-15 bps of spread for a bond three years shorter, and benefit from a steeper roll in the shorter end of the curve,” Wells Fargo Securities LLC senior analyst Dave Preston and associate analysts Geoff Horton and Mackenzie Miller said in a note released on Tuesday.

CIFC CLO Management priced $815.8 million of notes in the CIFC Funding 2017-I Ltd./CIFC Funding 2017-I LLC transaction, according to a market source.

The CLO sold $503.6 million of class A senior secured floating-rate notes at Libor plus 136 bps in the senior tranche.

Deutsche Bank Securities Inc. was the placement agent.

Meanwhile, CIFC Asset Management refinanced $656 million of notes due May 24, 2026 in the CIFC Funding 2014-II Ltd. CLO transaction, according to a market source.

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