By Cristal Cody
Eureka Springs, Ark., March 22 – Wellfleet Credit Partners, LLC sold $358.5 million of notes due April 20, 2028 in a Rule 144A-eligible collateralized loan obligation offering, according to a market source.
Wellfleet CLO 2016-1, Ltd./Wellfleet CLO 2016-1 LLC priced $2 million of class X floating-rate notes at Libor plus 100 basis points; $227.5 million of class A floating-rate notes at Libor plus 175 bps; $38.5 million of class B floating-rate notes at Libor plus 265 bps; $21 million of class C floating-rate notes at Libor plus 365 bps; $17.5 million of class D floating-rate notes at Libor plus 557 bps; $17.5 million of class E floating-rate notes at Libor plus 858 bps and $34.5 million of subordinated notes.
Morgan Stanley & Co. LLC arranged the offering.
Wellfleet Credit Partners is the CLO manager.
The CLO will have a two-year non-call period and a four-year reinvestment period.
The deal is collateralized primarily by first-lien senior secured loans.
Proceeds from the offering will be used to purchase a $350 million portfolio of mostly senior secured leveraged loans.
Wellfleet Credit Partners has priced two CLOs since it was formed, including the $360 million Wellfleet CLO 2015-1, LLC deal on Aug. 28.
Greenwich, Conn.-based Wellfleet Credit Partners is a performing credit arm created in 2015 by private investment firm Littlejohn & Co., LLC.
Issuer: | Wellfleet CLO 2016-1, Ltd./Wellfleet CLO 2016-1 LLC
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Amount: | $358.5 million
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Maturity: | April 20, 2028
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Securities: | Floating-rate and subordinated notes
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Structure: | Cash flow CLO
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Placement agent: | Morgan Stanley & Co. LLC
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Manager: | Wellfleet Credit Partners, LLC
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Call feature: | 2018
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Pricing date: | March 11
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Distribution: | Rule 144A
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|
Class X notes
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Amount: | $2 million
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Securities: | Senior secured floating-rate notes
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Coupon: | Libor plus 100 bps
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Ratings: | Moody’s: Aaa expected
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| Fitch: AAA
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|
Class A notes
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Amount: | $227.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 175 bps
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Ratings: | Moody’s: Aaa expected
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| Fitch: AAA
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Class B notes
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Amount: | $38.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 265 bps
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Rating: | Moody’s: Aa2 expected
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|
Class C notes
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Amount: | $21 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 365 bps
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Rating: | Moody’s: A2 expected
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Class D notes
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Amount: | $17.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 557 bps
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Rating: | Moody’s: Baa3 expected
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|
Class E notes
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Amount: | $17.5 million
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Securities: | Floating-rate notes
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Coupon: | Libor plus 858 bps
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Rating: | Moody’s: Ba3 expected
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|
Equity
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Amount: | $34.5 million
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Securities: | Subordinated notes
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Ratings: | Non-rated
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