ING prices $412.85 million CLO; CIFC set to price $621.9 million CLO; AAA tranches flat

By Cristal Cody

Tupelo, Miss., Feb. 6 - ING Alternative Asset Management LLC raised $412.85 million in a collateralized loan obligation transaction, while CIFC Asset Management LLC was expected to price its $621.9 million CLO, according to informed sources on Thursday.

CIFC planned to price the deal late in the day, an informed source said.

"It's pricing today," the source said.

ING sold the AAA tranche at Libor plus 150 basis points, in line with recent issuance, a source said.

New AAA tranches have priced in the Libor plus 150 bps to 160 bps area, though Credit Suisse Asset Management, LLC priced the AAA slice of the Madison Park Funding XIII Ltd./Madison Park Funding XIII LLC CLO on Monday tighter at Libor plus 145 bps, according to sources.

"If we can get a little clarification around this Volcker language, then that could be some kind of impetus for triple As to go tighter," an informed source said. "The market's hopeful there will be some sort of clarification sometime soon."

Primary activity stalled in January following the Dec. 10 announcement of the Volcker Rule, which prohibits banks from owning CLOs that hold bonds.

ING prices $412.85 million

ING Alternative Asset Management priced $412.85 million of notes due April 18, 2026 in the CLO via Citigroup Global Markets Inc., according to an informed source.

ING IM CLO 2014-1, Ltd./ING IM CLO 2014-1 LLC sold $256 million of class A-1 floating-rate notes (//AAA) at Libor plus 150 bps; $23 million of class A-2A floating-rate notes at Libor plus 200 bps and $30 million of 4.15% class A-2B fixed-rate notes at the top of the capital structure.

The CLO also priced $19 million of class B floating-rate notes at Libor plus 270 bps; $25 million of class C floating-rate notes at Libor plus 340 bps; $18.5 million of class D floating-rate notes at Libor plus 490 bps; $7 million of class E floating-rate notes at Libor plus 525 bps and $34.35 million of subordinated notes.

ING Alternative Asset Management will manage the CLO.

Proceeds from the deal will be used to purchase a portfolio of leveraged loans.

ING Alternative Asset Management brought three CLO deals in 2013. The firm sold the $618.35 million ING IM CLO 2013-1 Ltd./ING IM CLO 2013-1 LLC offering in March, the $470.25 million ING IM CLO 2013-2 Ltd./ING IM CLO 2013-2 LLC transaction in April and the $518.2 million ING IM CLO 2013-3, Ltd./ING IM CLO 2013-3 LLC deal in November.

New York-based ING Alternative Asset Management is an affiliate of ING Investment Management Co. LLC.

CIFC set to price

CIFC planned to price the $621.9 million CIFC Funding 2014 Ltd./CIFC Funding 2014 LLC deal via Credit Suisse Securities (USA) LLC late Thursday, according to an informed source.

Pricing information was not available by press time.

The offering was expected to include $372.25 million of class A floating-rate notes (Aaa/AAA/); $52.75 million of class B-1 floating-rate notes (Aa2); $20 million of class B-2 fixed-rate notes (Aa2); $47.5 million of class C deferrable floating-rate notes (A2); $31.75 million of class D deferrable floating-rate notes (Baa3); $30 million of class E deferrable floating-rate notes (Ba3); $14.25 million of class F deferrable floating-rate notes (B2) and $53.4 million of subordinated notes.

The notes are due April 18, 2025.

CIFC Asset Management will manage the CLO.

CIFC Asset Management brought four U.S. CLOs in 2013, including the $516.6 million CIFC Funding 2013-I, Ltd. deal, the $649.65 million CIFC Funding 2013-II, Ltd. offering, the $418 million CIFC Funding 2013-III, Ltd. transaction and the $522.5 million CIFC Funding 2013-IV Ltd. vehicle.

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

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