CIFC refinances $315.58 million CLO; loan downgrades eyed; high-grade paper active

By Cristal Cody

Tupelo, Miss., March 17 – In CLO market activity, CIFC Asset Management LLC sold $315.58 million of notes in a partial second refinancing of a 2013 broadly syndicated deal.

In the CIFC Funding 2013-I, Ltd./CIFC Funding 2013-I, LLC transaction, the CLO sold $1.88 million of class X-R floating-rate notes at Libor plus 50 bps and $313.7 million of class A-1-R2 floating-rate notes at Libor plus 103 bps.

The original CLO was issued on March 21, 2013 and first refinanced on Aug. 9, 2017.

Meanwhile, the financial markets improved on Tuesday with stocks gaining and risk-off assets softer after sinking amid coronavirus-related concerns.

In the CLO sector, concerns are emerging on impacts from loan ratings downgrades from sectors at risk to the fallout from the virus, including hotel, gaming and leisure and transportation, according to a Wells Fargo Securities, LLC research note on Tuesday.

Separately, high-grade securitized secondary market action remained strong on Monday, Trace data shows.

During the session, $895.52 million of investment-grade CBO/CDO/CLO paper and $189.9 million of lower-rated securities were traded.

The high-grade securities traded at an average price of 91.70 and a 93.30 weighted average price, while the non-high-grade paper traded at an average 68.80 price and 22.70 weighted average price on Monday.

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