Chicago Fundamental Investment prices $483.92 million CLO; 2017 deal volume strong

By Cristal Cody

Tupelo, Miss., Nov. 28 – Chicago Fundamental Investment Partners, LLC tapped the CLO primary market with a $483.92 million offering in the CLO manager’s first CLO transaction of 2017.

Nearly $100 billion of new CLOs have priced year to date, according to market sources.

New U.S. CLO issuance and refinancing action has been strong over the year and surpassed 2016’s volume over the third quarter, according to a Moody’s Investors Service research note released on Monday.

“CLO issuance volume increased again last quarter, adding $44.5 billion, from 51 new deals and 31 resets,” Moody’s said in the report. “At Q3 end, 2017 issuance volume stood at $93.6 billion, surpassing 2016's full-year total of $88.3 billion. Refinancings (excluding resets) fell to 34 in Q3, down from 87 in Q2.”

Chicago Fundamental Investment Partners sold $483,923,000 of notes due Jan. 18, 2030 in the CFIP CLO 2017-1, Ltd./CFIP CLO 2017-1, LLC transaction, according to market sources.

The CLO priced $310 million of class A floating-rate notes at a discount margin of Libor plus 122 basis points in the senior tranche.

Wells Fargo Securities LLC was the placement agent.

The notes are backed primarily by broadly syndicated senior secured corporate loans.

Chicago Fundamental Investment Partners is a Chicago-based asset management firm.

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