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Published on 7/14/2017 in the Prospect News CLO Daily.

New Issue: Chicago Fundamental Investment Partners refinances $488.39 million CFIP CLO 2014-1

By Cristal Cody

Tupelo, Miss., July 14 – Chicago Fundamental Investment Partners, LLC sold $488,387,180 of notes in a refinancing and reset of the CFIP CLO 2014-1, Ltd./CFIP CLO 2014-1, LLC transaction, according to a market source and a notice of executed second supplemental indenture on Thursday.

The CLO priced $293 million of class A-R senior secured floating-rate notes at Libor plus 132 basis points; $60 million of class B-R senior secured floating-rate notes at Libor plus 185 bps; $37 million of class C-R secured deferrable floating-rate notes at Libor plus 270 bps; $25 million of class D-R secured deferrable floating-rate notes at Libor plus 410 bps; $18.6 million of class E-R secured deferrable floating-rate notes at Libor plus 660 bps and an additional $54,787,180 of income notes.

Wells Fargo Securities LLC was the refinancing placement agent.

Chicago Fundamental Investment Partners will continue to manage the CLO.

The maturity on the new notes will be extended to July 13, 2029 from the original April 13, 2025 maturity.

In addition, the refinanced CLO will have a two-year non-call period and a four-year reinvestment period.

In the original transaction issued on March 27, 2014, the CLO priced $189 million of class A-1 senior secured floating-rate notes at Libor plus 155 bps; $64.5 million of class A-2 senior secured floating-rate notes at Libor plus 147 bps; $50 million of class B senior secured floating-rate notes at Libor plus 220 bps, $31.25 million of class C secured deferrable floating-rate notes at Libor plus 290 bps, $20 million of class D secured deferrable floating-rate notes at Libor plus 350 bps; $16.5 million of class E secured deferrable floating-rate notes at Libor plus 475 bps and $41,587,180 of income notes.

Proceeds from the offering will be used to redeem the original notes. The original income notes will remain outstanding.

The CLO is backed primarily by broadly syndicated senior secured corporate loans.

Chicago Fundamental Investment Partners is a Chicago-based asset management firm.

Issuer:CFIP CLO 2014-1, Ltd./CFIP CLO 2014-1, LLC
Amount:$488,387,180 refinancing
Maturity:July 13, 2029
Securities:Floating-rate and income notes
Structure:Cash flow CLO
Refinancing agent:Wells Fargo Securities LLC
Manager:Chicago Fundamental Investment Partners, LLC
Call feature:July 13, 2019
Settlement date:July 13
Distribution:Rule 144A, Regulation S
Class A-R notes
Amount:$293 million
Securities:Senior secured floating-rate notes
Coupon:Libor plus 132 bps
Ratings:Moody’s: Aaa
S&P: AAA
Class B-R notes
Amount:$60 million
Securities:Senior secured floating-rate notes
Coupon:Libor plus 185 bps
Rating:S&P: AA
Class C-R notes
Amount:$37 million
Securities:Secured deferrable floating-rate notes
Coupon:Libor plus 270 bps
Rating:S&P: A
Class D-R notes
Amount:$25 million
Securities:Secured deferrable floating-rate notes
Coupon:Libor plus 410 bps
Rating:S&P: BBB-
Class E-R notes
Amount:$18.6 million
Securities:Secured deferrable floating-rate notes
Coupon:Libor plus 660 bps
Rating:S&P: BB-
Equity
Amount:$54,787,180
Securities:Income notes
Ratings:Non-rated

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