American Capital Closes a CLO, CIFC Prices Another

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The CLO market hasn’t closed for the summer after all.

American Capital said Thursday it completed a $510 million collateralized loan obligation that complies with European risk retention requirements.

ACAS CLO 2015-2 was arranged by Wells Fargo Securities. Proceeds were invested primarily in broadly syndicated senior secured floating rate loans purchased in the primary and secondary markets. 

The senior tranche was rated by triple-A by both Moody’s Investors Service and Fitch Ratings.

American Capital CLO Management, a unit of American Capital, purchased $29.5 million of the non-rated subordinated notes, with third party investors purchasing the remaining $20.5 million.  The retention of a control equity investment is intended to make deal compliant with European risk retention, broadening the investor base for the deal.

American Capital is

American Capital Asset Management manages approximately $4.3 billion of loan and loan-related assets in eight CLOs, in the equity of approximately 65 third-party CLOs and American Capital Senior Floating, Ltd.

While this CLO has just closed, another from CIFC Asset Management has just been priced. The $512.8 million CIFC Funding 2015-IV is also rated by Fitch. It has two senior, ‘AAA’ rated tranches, a $287.2 million tranche marketed at 144 basis points over three-month Libor and a $35 million tranche marketed at a fixed interest rate of 3.45%/

Fitch is not rating the subordinated tranches. 

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