By Cristal Cody
Eureka Springs, Ark., Nov. 3 – Wellfleet Credit Partners, LLC closed Thursday on a new $406.5 million collateralized loan obligation offering of 12-year notes, according to a market source and a company news release.
In the Wellfleet CLO 2016-2, Ltd./Wellfleet CLO 2016-2 LLC transaction, the CLO priced $260 million of class A-1 senior secured floating-rate notes at Libor plus 165 basis points and $47 million of class A-2 senior secured floating-rate notes at Libor plus 220 bps.
The CLO also sold $21.5 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 300 bps; $16.5 million of class C-1 mezzanine secured deferrable floating-rate notes at Libor plus 450 bps; $7 million of class C-2 mezzanine secured deferrable floating-rate notes at Libor plus 500 bps; $16 million of class D junior secured deferrable floating-rate notes at Libor plus 700 bps and $38.05 million of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
Wellfleet Credit Partners is the manager of the CLO, which has a two-year non-call period and a four-year reinvestment period.
The deal is collateralized primarily by broadly syndicated senior secured loans.
In addition to several non-affiliated investors, Littlejohn funds, as well as its partners, invested in the CLO, according to the release.
Proceeds from the offering will be used to purchase a $400 million portfolio of mostly senior secured leveraged loans.
Wellfleet Credit Partners has priced two CLOs year to date and three CLOs since it was formed.
The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.
| Issuer: | Wellfleet CLO 2016-2, Ltd. /Wellfleet CLO 2016-2 LLC
|
| Amount: | $406.5 million
|
| Maturity: | Oct. 20, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | Wellfleet Credit Partners, LLC
|
| Call feature: | Two years
|
| Pricing date: | Sept. 27
|
| Settlement date: | Nov. 3
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $260 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $47 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $21.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C-1 notes
|
| Amount: | $16.5 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 450 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class C-2 notes
|
| Amount: | $7 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
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| Amount: | $16 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $38.05 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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