Citigroup has launched a $450 million CLO to be managed by CIFC Deerfield Corp., according to reports. The transaction is the first collateralized loan obligation from CIFC since 2007.
The CIFC Funding 2011-1 CLO is backed by U.S.-dollar broadly syndicated senior secured corporate loans.
The initial marketing effort will focus on the sale of the subordinate notes and the deal's Class E tranche, which is unrated and will be structured as a floating-rate note, according to Thomson Reuters. The new organization reports significant investor interest in the offering's subordinate notes based on reverse inquiry. CIFC Deerfield will co-invest in the subordinate tranche.
A debt term sheet will be sent out to interested parties in one to two weeks, according to Thomson Reuters. The transaction has already started ramping up, with $100 million of loans in warehouse.
Standard & Poor's and Moody's Investor Services have rated the transaction, which comprises a $310.25 million triple-A tranche; a $17 million double-A tranche; a $40.50 million A tranche; a $19.60 million triple-B tranche; a $24.75 million double-B tranche; an unrated $19.9 million floater; and $35.83 million of subordinate notes.
Asset managers Deerfield Capital and Commercial Industrial Finance Corp. closed their merger in mid-April. The newly formed CIFC Deerfield has $15 billion under management post-merger, with $11.3 billion in CLOs.