Black Diamond, Octagon price; CIFC closes; market gears up for ‘busy’ September primary

By Cristal Cody

Tupelo, Miss., Sept. 3 – CLO issuance remains off to a slow start in September as market participants return to their desks following the end of the summer season, according to informed sources on Wednesday.

“Don’t know of anything coming this week,” one source said. “Things are just getting going again. It will be busy.”

Details emerged on new offerings from Black Diamond Capital Management, LLC and Octagon Credit Investors, LLC.

Black Diamond Capital sold $411.75 million of notes in the Black Diamond CLO 2014-1, Ltd./Black Diamond CLO 2014-1, LLC deal, according to a market source. The CLO priced the AAA tranche of notes at Libor plus 150 basis points.

J.P. Morgan Securities LLC arranged the transaction.

Black Diamond CLO 2014-1 Adviser, LLC, an affiliate of Black Diamond Capital Management, will manage the CLO.

The deal is Black Diamond Capital’s first CLO offering in 2014.

Octagon Credit Investors raised $413 million in the Octagon Loan Funding, Ltd./Octagon Loan Funding, LLC transaction via GreensLedge Capital Markets LLC, a source said. Octagon placed the AAA tranche at Libor plus 145 bps.

The New York City-based firm has brought three new CLOs over the year.

CIFC completes deal

In other market activity, CIFC Corp. reported in a news release that it closed on the $626.5 million CIFC Funding 2014-IV, Ltd./CIFC Funding 2014-IV, LLC deal brought on Aug. 5.

CLO manager CIFC Asset Management LLC placed the AAA-rated tranche of notes at Libor plus 154 bps, according to a market source.

Morgan Stanley & Co. LLC was the placement agent.

CIFC said in the release the transaction was “supported by over 25 institutional investors, including a number of first time investors with CIFC.”

CIFC has priced four CLOs in 2014 and raised $2.7 billion in new assets under management.

“The four CLOs benefited from attractive warehouse facilities provided by the arranging banks that enabled the company to aggregate up to 50% of collateral pre-pricing,” CIFC said.

The credit manager is based in New York City.

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