Home / newsitem / Wellfleet Credit Partners Completes Fifth CLO Offering

Wellfleet Credit Partners Completes Fifth CLO Offering

Assets Under Management Exceed $2.0 Billion

GREENWICH, CT September 26, 2017 — Wellfleet Credit Partners (“Wellfleet”) announced today the closing of a $557.0 million collateralized loan obligation (“CLO”), referred to as “Wellfleet CLO 2017-2.” Wellfleet CLO 2017-2 represents the fifth 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 2017-2 was upsized approximately $100.0 million during marketing. With the completion of this CLO, Wellfleet has over $2.0 billion in assets under management. After forming the Wellfleet platform in 2015 as part of the Littlejohn Debt Management business, Wellfleet has completed five CLOs in two years, two of which were issued in 2017.

Scott McKay, a Portfolio Manager at Wellfleet, commented, “We are pleased with the support we received for this CLO from both existing investors and investors that are new to the Wellfleet platform. We look forward to delivering future opportunities with this diverse and strategic group of investors.”

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 $506.0 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.

Dennis Talley, a Portfolio Manager at Wellfleet, added, “We are proud that the platform has been able to successfully reach over $2.0 billion in assets under management since Wellfleet launched in 2015. We believe favorable credit market conditions coupled with our deep management team will allow us to maintain our investment style and portfolio construction strategies to create new CLO vehicles.”

Class Par Size
($ in Millions)

A-1 $354.75 Aaa/AAA 3m L+125

A-2 63.25 Aa2/NR 3m L+175

B 27.50 A2/NR 3m L+225

C 35.75 Baa3/NR 3m L+340

D 24.75 Ba3/NR 3m L+675

Subordinated 51.00 Not Rated  

Total $557.00    

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 investment firm focused on private equity and debt investments primarily in middle market companies. With over $5 billion under management, the Firm seeks to create long-term value for its investors and build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.

Media Contacts
Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co.
(212) 257-4170