By Cristal Cody
Tupelo, Miss., April 4 – Wellfleet Credit Partners, LLC priced $457.8 million of notes due April 15, 2029 in a new collateralized loan obligation offering, according to a market source.
Wellfleet CLO 2017-1, Ltd./Wellfleet CLO 2017-1 LLC priced $290.25 million of class A-1 senior secured floating-rate notes at Libor plus 132 basis points and $52.9 million of class A-2 senior secured floating-rate notes at Libor plus 170 bps.
The CLO also sold $24.7 million of class B mezzanine secured deferrable floating-rate notes at Libor plus 250 bps; $28 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 350 bps; $18.3 million of class D junior secured deferrable floating-rate notes at Libor plus 605 bps and $43.65 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 first-lien senior secured corporate loans.
Proceeds from the offering will be used to purchase a $400 million portfolio of mostly senior secured leveraged loans.
Wellfleet Credit Partners priced two CLOs in 2016.
The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.
| Issuer: | Wellfleet CLO 2017-1, Ltd./Wellfleet CLO 2017-1 LLC
|
| Amount: | $457.8 million
|
| Maturity: | April 15, 2029
|
| 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: | March 29
|
| Settlement date: | April 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $290.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 132 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $52.9 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B notes
|
| Amount: | $24.7 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $28 million
|
| Securities: | Mezzanine secured deferrable floating-rate notes
|
| Coupon: | Libor plus 380 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $18.3 million
|
| Securities: | Junior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 605 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $43.65 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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