NewsItem
Littlejohn & Co. News | 2016
Wellfleet Credit Partners Completes Second CLO Offering
April 21, 2016

GREENWICH, CT, April 21, 2016 - Wellfleet Credit Partners ("Wellfleet") announced today the closing of a $358.5 million collateralized loan obligation ("CLO"), referred to as "Wellfleet CLO 2016-1."  Wellfleet CLO 2016-1 represents the second CLO issuance for Wellfleet, the performing credit business of Littlejohn & Co., LLC ("Littlejohn"), a private investment firm.  Wellfleet's debut $360.0 million CLO, Wellfleet CLO 2015-1, closed in September 2015.  Wellfleet was one of only 18 managers to price a CLO offering during the first quarter of 2016.

The CLO will be backed by a diversified portfolio of broadly syndicated senior secured loans.  Six classes of notes rated Aaa through Ba3 by Moody's and two classes of notes rated AAA by Fitch totaling $324.0 million were placed.  Littlejohn funds, as well as its partners, invested in the CLO.  The CLO vehicle will have a two-year non-call and a four-year reinvestment period with a final maturity of 12 years.  Wellfleet will retain equity through a majority-owned affiliate in order to comply with U.S. risk retention requirements.

Brian Ramsay, President of Littlejohn, stated "We were appreciative of the strong support that Wellfleet CLO 2016-1 received from our existing investors and were also pleased with the addition of many new investors in this transaction."  Mr. Ramsay further added, "The execution of Wellfleet CLO 2016-1 certainly benefitted from investors' recognition of the performance of Wellfleet's 2015-vintage CLO."

 

Class

 

Par Size

($ in Millions)

 

Ratings (Moody's/Fitch)

 

Coupon

X

 

2.00

 

Aaa/AAA

 

        3m L+100

A

 

227.50

 

Aaa/AAA

 

        3m L+175

B

 

38.50

 

Aa2/NR

 

        3m L+265

C

 

21.00

 

A2/NR

 

        3m L+365

D

 

17.50

 

Baa3/NR

 

        3m L+557

E

 

17.50

 

Ba3/NR

 

        3m L+858

Subordinated

 

34.50

 

Not Rated

 

 

     Total

 

$358.50

 

 

 

 

 

Having launched Wellfleet Credit Partners last year as part of the Littlejohn Debt Management business, the platform has completed two CLOs in the past seven months.  Robert Davis, a Littlejohn Partner, stated "We are excited about the performance and the growth of the Wellfleet business.  In addition, the performing credit investment area is integrating very well within Littlejohn, and we are realizing benefits in the broader Littlejohn Debt Management business."  

Morgan Stanley & Co. LLC acted as the arranger for the CLO.  Dechert LLP acted as legal advisor.

 

 

The securities offered in the CLO have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration under the Securities Act and applicable state securities laws.  This release does not constitute an offer to sell or a solicitation of an offer to buy any such securities.

About Littlejohn & Co., LLC

            Littlejohn & Co. is a Greenwich, Connecticut- based private equity firm investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach.  The firm is currently investing from Littlejohn Fund V, L.P., which has $2 billion in capital commitments.  For more information, visit www.littlejohnllc.com.