CIFC latest manager to satisfy seniors with make-whole agreement

By Will Caiger-Smith
27 Apr 2015

CIFC’s latest US CLO, priced by Barclays, is the latest in a string of deals to use a conciliatory make-whole structure to reduce refinance risk for senior investors.

The structure, which consists of an agreement to continue paying the CLO’s senior investors the deal’s original spreads for a set period, even if the deal is refinanced, is unpopular with managers.

However, the trend may not last much longer as market participants opt for longer ...

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