Brigade Capital, Barings price CLOs; CIFC to refinance; spreads unchanged across stack

By Cristal Cody

Eureka Springs, Ark., Oct. 31 – Primary and refinancing action continues to remain strong in the CLO markets, according to sources on Monday.

Brigade Capital Management, LLC brought a $404.3 million CLO deal in its first transaction of the year.

Barings LLC, formerly known as Babson Capital Management LLC, priced a $512.3 million CLO.

Coming up, CIFC Asset Management LLC intends to refinance $488.4 million of notes in a vintage 2015 CLO deal.

CLO spreads across the capital structure ended Friday flat on the week, according to a BofA Merrill Lynch note. AAAs were unchanged at Libor plus 140 basis points.

J.P. Morgan Securities LLC analysts expect spreads in some CLO tranches to “end 2016 flat or wider especially if there is a year-end supply rush and macro risks,” according to a note released on Monday.

Barings prices CLO 2016-III

Barings sold $512.3 million of notes due Jan. 15, 2028 in the Barings CLO Ltd. 2016-III transaction, according to a market source.

The CLO sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 143 bps at the top of the capital stack.

The deal was downsized from an initial $614.3 million offering.

Citigroup Global Markets Inc. was the underwriter.

The deal is backed primary by broadly syndicated first-lien senior secured corporate loans.

Charlotte, N.C.-based Barings is a subsidiary of Massachusetts Mutual Life Insurance Co.

Brigade sells $404.3 million

Brigade Capital Management priced a $404.3 million collateralized loan obligation offering, according to a market source.

Battalion CLO X Ltd./Battalion CLO X LLC sold $260 million of class A-1 floating-rate notes at Libor plus 155 bps in the senior tranche.

Citigroup Global Markets Inc. was the deal arranger.

The New York City-based investment advisor firm priced two CLO transactions in 2015.

CIFC plans refinancing

CIFC Asset Management intends to refinance $488.4 million of notes due Jan. 22, 2027 in the CIFC Funding 2015-I, Ltd./CIFC Funding 2015-I, LLC CLO transaction, according to a notice of optional redemption.

CIFC Funding will refinance $340 million of class A-1-R senior secured floating-rate notes; $50 million of class A-2-R senior secured floating-rate notes; $66 million of class B-R senior secured floating-rate notes and $32 million of class C-R mezzanine secured deferrable floating-rate notes.

Nomura Securities International, Inc. is the refinancing agent.

The notes will be refinanced on Nov. 22.

CIFC Asset Management has refinanced three vintage CLOs year to date.

The credit manager is based in New York.

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