CIFC, BlackRock, Cutwater, Oaktree price; BlueMountain AAAs tighter than talk

By Cristal Cody

Tupelo, Miss., Dec. 15 – CIFC Asset Management LLC tapped the CLO primary market with a $559.9 million offering in the firm’s fifth deal of the year, according to a market source on Monday.

The CLO placed the AAA-rated tranche of notes at Libor plus 158 basis points.

December CLO issuance also includes deals from BlueMountain Capital Management LLC, Cutwater Investor Services Corp., BlackRock Financial Management, Inc. and Oaktree Capital Management, LP, although primary action for the month remains low, according to market sources.

“CLO supply in December has been light [at $3.4 billion in seven deals],” J.P. Morgan Securities LLC analysts said in a note. “With the second half of the month seasonally slow due to the holidays, December could end up being one of the lightest months since January 2014.”

Year to date, CLO issuance has climbed to more than $152 billion in transactions priced in the U.S. and European primary markets, according to data compiled by Prospect News.

In the secondary market, U.S. and European CLO spreads were flat from the previous week, according to JPMorgan.

U.S. BBB notes were unchanged at Libor plus 310 bps. Euro-denominated BBB CLO notes were flat at Euribor plus 320 bps.

CIFC prices $559.9 million

CIFC Asset Management priced $559.9 million of notes due Jan. 17, 2027 in the CLO deal, according to a market source.

CIFC Funding 2014-V, Ltd./CIFC Funding 2014-V, LLC sold $307 million of class A-1 floating-rate notes at Libor plus 158 bps at the top of the capital structure and $11 million of class F floating-rate notes at Libor plus 655 bps at the bottom of the capital stack.

RBC Capital Markets, LLC was the placement agent.

CIFC Asset Management has priced five CLO deals over the year.

The New York City-based investment adviser is a subsidiary of CIFC Corp.

BlueMountain upsizes

BlueMountain Capital Management priced an upsized $510.5 million CLO deal, according to a market source.

BlueMountain CLO 2014-4 Ltd./BlueMountain CLO 2014-4 LLC sold $301.1 million of class A-1 senior secured floating-rate notes (Aaa/AAA/) at Libor plus 150 bps, tighter than initial guidance of Libor plus 155 bps to Libor plus 160 bps.

At the bottom of the stack, the CLO priced $8.3 million of class F senior secured deferrable floating-rate notes (/B/) at Libor plus 630 bps.

The offering was upsized from $408.6 million.

J.P. Morgan Securities LLC was the placement agent.

The notes are due Nov. 30, 2026.

BlueMountain Capital Management has priced four CLO transactions year to date.

The private investment firm is based in New York City.

Cutwater sells $411.5 million

Cutwater Investor Services priced $411.5 million of notes due Jan. 15, 2027 in the Cutwater 2014-II, Ltd./Cutwater 2014-II, LLC transaction, a source said.

The CLO sold $258.1 million of class A-1 senior secured floating-rate notes at Libor plus 157 bps at the top of the capital structure and $22.8 million of class D secured deferrable floating-rate notes at Libor plus 585 bps at the bottom of the stack.

Natixis Securities Americas LLC was the placement agent.

Cutwater Investor Services has priced two CLO transactions in 2014.

The investment management firm is based in New York City.

BlackRock raises $561 million

BlackRock Financial Management priced $561 million of notes due Dec. 18, 2026 in the Magnetite XI, Ltd./Magnetite XI LLC CLO transaction, a market source said.

The CLO placed $349.3 million of class A-1 floating-rate notes at Libor plus 145 bps.

The CLO sold $30.3 million of class D floating-rate notes at Libor plus 515 bps at the bottom of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

BlackRock Financial Management has priced three CLO deals over the year.

The investment management firm is based in New York City.

Oaktree brings deal

Oaktree Capital Management sold $552.5 million of notes due Nov. 17, 2025 in a four-part CLO offering via MUFG, according to a market source.

Oaktree EIF II Series A2, Ltd./Oaktree EIF Series A2, LLC priced $333 million of class A floating-rate notes at Libor plus 156 bps, $78 million of class B floating-rate notes at Libor plus 230 bps, $40 million of class C deferrable floating-rate notes at Libor plus 320 bps and $101.5 million of income notes.

The notes are due Oct. 20, 2026.

Oaktree Capital Management has priced four U.S. CLO deals year to date.

The Los Angeles-based asset management firm is a subsidiary of Oaktree Capital Group, LLC.

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