GREENWICH, CT May 4, 2017 — Wellfleet Credit Partners (“Wellfleet”) announced today the closing of a $457.8 million collateralized loan obligation (“CLO”), referred to as “Wellfleet CLO 2017-1.” Wellfleet CLO 2017-1 represents the fourth CLO issuance for Wellfleet, the performing credit business of Littlejohn & Co., LLC (“Littlejohn”), a private investment firm. Benefitting from supportive market conditions and investor receptivity, CLO 2017-1 was upsized approximately $50.0 million during marketing. With the completion of this CLO, Wellfleet is managing four CLOs that total over $1.5 billion in aggregate. The Wellfleet platform has completed four CLOs in the past 20 months.
The CLO will be backed by a diversified portfolio of broadly syndicated senior secured loans. Five classes of notes rated Aaa through Ba3 by Moody’s and one class of notes rated AAA by Fitch totaling $414.2 million were placed. In addition to several non-affiliated investors, Littlejohn funds, as well as its partners, invested in the CLO. The CLO vehicle will have a two-year non-call and a four-year reinvestment period with a final maturity of 12 years. Wellfleet will retain equity through a majority-owned affiliate in order to comply with U.S. risk retention requirements.
Scott McKay, Wellfleet Portfolio Manager, stated, “We are appreciative of the support that the transaction received from our existing investors, and that we also added many new investors across the capital structure. With this CLO, Wellfleet was able to draw upon a global investor base.”
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| Class | Par Size ($ in Millions) |
Ratings (Moody’s/Fitch) |
Coupon |
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| A-1 | $290.25 | Aaa/AAA | 3m L+132 |
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| A-2 | 52.90 | Aa2/NR | 3m L+170 |
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| B | 24.70 | A2/NR | 3m L+250 |
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| C | 28.00 | Baa3/NR | 3m L+380 |
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| D | 18.30 | Ba3/NR | 3m L+605 |
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| Subordinated | 43.65 | Not Rated | |
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| Total | $457.80 | ||
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Wellfleet Credit Partners was established in 2015 as part of the Littlejohn Debt Management business.
Dennis Talley, Wellfleet Portfolio Manager, commented, “We are pleased that we have navigated varying market environments to both invest in underlying credits, as well as to be a consistent issuer of new CLO vehicles. We look forward to continuing to grow the Wellfleet business.”
Citigroup Global Markets acted as the arranger for the CLO. Dechert LLP acted as legal advisor to Wellfleet.
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 deep-value, special situations investor investing in middle-market companies through all economic cycles. The firm makes a broad range of equity and debt investments in undervalued companies that can benefit from Littlejohn’s operational and strategic approach. For more information, visit www.littlejohnllc.com.
Media Contacts
Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co.
(212) 257-4170
