Silvermine prices; CIFC details deal; Anchorage Capital, Babson prep CLOs; AAAs flat

By Cristal Cody

Tupelo, Miss., May 2 - Silvermine Capital Management LLC raised $518.1 million in the Silvermore CLO Ltd./Silvermore CLO LLC transaction, according to a market source.

The Silvermore CLO priced the AAA-rated tranche at Libor plus 145 basis points, on the tight side of recent issuance.

In other primary market activity, details emerged on CIFC Asset Management LLC's $828.59 million CLO deal.

The firm priced the AAA-rated tranche at Libor plus 148 bps, according to a market source.

New issuance AAA notes are holding in the Libor plus 150 bps range, according to market sources.

"Given the large amount of primary supply and apparent lack of impending further relief on the Volcker Rule, we still believe that AAA spreads are unlikely to tighten meaningfully," Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Jason McNeilis said in a note on Friday. "A move tighter by 10 bps or so is not out of the question but, in the near term, we believe that a heavy primary supply should keep AAA spreads somewhat sticky."

More than $34 billion of CLOs have priced year to date.

About $16 billion of deals are in the pipeline, according to a market source.

Coming up, Anchorage Capital Group, LLC plans a $621.5 million CLO offering, while Babson Capital Management LLC intends to price a $462.8 million transaction, sources said.

In other activity in the market, THL Credit Advisors LLC announced on Friday that it closed on its previously reported $620.4 million THL Credit Wind River 2014-1 CLO Ltd./THL Credit Wind River 2014-1 CLO LLC deal.

The transaction, priced on April 2, was upsized from $400 million and is the firm's largest to date.

THL Credit said it has closed on more than $2 billion of CLOs since December 2012.

The Boston-based investment management firm was in the primary market in 2013 with two CLO transactions.

Silvermine prices CLO

Silvermine Capital Management sold $518.1 million of notes due May 15, 2026 in the Silvermore CLO deal via Citigroup Global Markets Inc., according to a market source.

The CLO priced $322.5 million of class A-1 floating-rate notes (//AAA) at Libor plus 145 bps; $57.8 million of class A-2 floating-rate notes at Libor plus 205 bps; $29.7 million of class B floating-rate notes at Libor plus 300 bps; $26 million of class C floating-rate notes at Libor plus 345 bps; $26.2 million of class D floating-rate notes at Libor plus 490 bps; $5 million of class E floating-rate notes at Libor plus 520 bps and $50.9 million of subordinated notes.

Silvermine Capital Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Proceeds will be used to purchase a portfolio of about $500 million of leveraged loans.

Silvermine Capital Management was in the market in March 2013 with the $412.97 million ECP CLO 2013-5 Ltd./ECP CLO 2013-5 LLC deal.

The employee-owned asset management firm is based in Stamford, Conn.

CIFC brings $828.59 million

CIFC Asset Management brought $828.59 million of notes due May 25, 2026 in a CLO offering, according to a market source.

CIFC Funding 2014-II Ltd./CIFC Funding 2014- II LLC priced $504 million of class A-1L senior secured floating-rate notes (Aaa/AAA/) at Libor plus 148 bps; $73.2 million of class A-2L senior secured floating-rate notes (Aa2) at Libor plus 215 bps; $10 million of 4.491% class A-2F senior secured fixed-rate notes (Aa2); $68.8 million of class A-3L senior secured deferrable floating-rate notes (A2) at Libor plus 285 bps; $40 million of class B-1L senior secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps; $41.6 million of class B-2L senior secured deferrable floating-rate notes (Ba3) at Libor plus 460 bps and $90.99 million of subordinated notes.

RBS Securities Inc. was the placement agent.

CIFC Asset Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured corporate loans.

The New York City-based investment adviser, a subsidiary of CIFC Corp., was in the market in February with the $623 million CIFC Funding 2014 Ltd./CIFC Funding 2014 LLC deal.

Anchorage Capital plans CLO

Anchorage Capital Group plans to offer $621.5 million of notes due July 28, 2026 in the Anchorage Capital CLO 4, Ltd./Anchorage Capital CLO 4, LLC deal, according to a market source.

The offering includes $264.5 million of class A-1A senior secured floating-rate notes (//AAA); $100 million of class A-1B senior secured floating-rate notes (//AAA); $79.5 million of class A-2 floating-rate notes; $27.5 million of class B floating-rate notes; $42 million of class C floating-rate notes; $37 million of class D floating-rate notes; $15 million of class E floating-rate notes and $56 million of subordinated notes.

BofA Merrill Lynch is the placement agent.

Anchorage Capital will manage the CLO, which is backed primarily by a portfolio of broadly syndicated senior secured corporate loans.

Proceeds will be used to repay interim financing and to purchase assets to reach a target portfolio of about $600 million of primarily leveraged loans.

The New York City-based global asset manager was last in the primary market in February with the $517.75 million Anchorage Capital CLO 3, Ltd./Anchorage Capital CLO 3, LLC deal.

Babson readies deal

Babson Capital Management intends to price $462.8 million of notes due in June 2025 in the CLO offering via J.P. Morgan Securities LLC, according to a market source.

The Babson CLO 2014-I Ltd./Babson CLO 2014-I LLC deal includes $279 million of class A-1 senior secured floating-rate notes (Aaa//AAA); $57.7 million of class A-2 senior secured floating-rate notes (Aa2); $22.9 million of class B senior secured deferrable floating-rate notes (A2); $29.7 million of class C senior secured deferrable floating-rate notes (Baa3); $26.2 million of class D senior secured deferrable floating-rate notes (Ba3); $5 million of class E senior secured deferrable floating-rate notes (B2) and $42.3 million of subordinated notes.

Babson Capital Management will manage the CLO, which is backed primarily by broadly syndicated first-lien senior secured loans and eligible investments.

The investment management firm, based in Boston, Springfield, Mass., and Charlotte, N.C., was in the U.S. primary market in 2013 with two CLO deals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.