CLO primary action thin; U.S., Europe secondary markets active; Wellfleet closes debut CLO

By Cristal Cody

Tupelo, Miss., Sept. 24 – CLO primary action remains light – as it was forecast for the month – while the U.S. and European CLO secondary markets have been active over the week, according to sources on Thursday.

CLO managers year to date have priced about $84.5 billion of CLOs, according to data compiled by Prospect News.

Market analysts forecast about $100 billion of total issuance for the year.

More than €100 million of euro-denominated bonds were on BWIC lists over Wednesday’s session, while AAA and mezzanine bonds were active on U.S. BWIC lists on Thursday, a source said.

In other activity over the session, Wellfleet Credit Partners, LLC announced that it closed on its previously reported debut $360 million Wellfleet CLO 2015-1, LLC offering that priced on Aug. 28.

Wellfleet Credit Partners was formed earlier in the year by Greenwich, Conn.-based private equity firm Littlejohn & Co., LLC.

“Despite a volatile market environment, we are delighted by the strong reception that the CLO received from prominent CLO investors,” Brian Ramsay, president of Littlejohn, said in the statement.

Wellfleet CLO 2015-1, LLC priced $215 million of class A-1 12-year floating-rate notes at Libor plus 165 basis points in the senior tranche.

Morgan Stanley & Co. LLC was the placement agent for the deal, which is backed by broadly syndicated senior secured loans.

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