Wellfleet prices $406.05 million CLO; Guggenheim sells $449 million; Anchorage preps CLO 9

By Cristal Cody

Eureka Springs, Ark., Nov. 3 – Littlejohn & Co., LLC funding arm Wellfleet Credit Partners, LLC closed Thursday on a new $406.5 million CLO.

Wellfleet said it will retain equity through a majority-owned affiliate in order to comply with U.S. risk retention requirements.

In addition to several non-affiliated investors, Littlejohn funds and its partners invested in the CLO, according to a company news release.

“We are pleased that the transaction received support from our existing investors and also expanded Wellfleet's investor base, in particular the addition of several third-party investors in the subordinated notes,” Brian Ramsay, president of Littlejohn, said in the release.

In other pricing action, Guggenheim Partners Investment Management LLC priced $449 million of notes in the Salem Fields CLO II offering on Friday, according to a market source.

Coming up, Anchorage Capital Group, LLC plans to price a new $512.05 million CLO.

Wellfleet taps market

Wellfleet Credit Partners 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 at the top of the capital structure.

Citigroup Global Markets Inc. arranged the offering.

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.

Guggenheim sells $449 million

Guggenheim Partners Investment Management priced $449 million of notes in the Salem Fields CLO II offering via MUFG, according to a market source.

The CLO sold $285 million of class A-1 floating-rate notes at Libor plus 152 bps in the AAA-rated tranche.

The CLO manager has priced one new CLO deal and brought two fundings of an existing CLO year to date.

The investment management firm and subsidiary of Guggenheim Partners, LLC is based in Santa Monica, Calif.

Anchorage offers CLO 9

Anchorage Capital Group plans to price $512.05 million of notes due 2029 in the new Anchorage Capital CLO 9 Ltd./Anchorage Capital CLO 9 LLC transaction, according to a market source.

The deal includes $312.5 million of class A senior secured floating-rate notes (Aaa//AAA); $54.75 million of class B senior secured floating-rate notes (Aa2//AA); $28,875,000 of class C deferrable floating-rate notes (A2); $33.5 million of class D deferrable floating-rate notes (Baa3); $29,375,000 of class E deferrable floating-rate notes (Ba3); $11 million of class F deferrable floating-rate notes (non-rated) and $42.05 million of subordinated notes.

J.P. Morgan Securities LLC will arrange the offering.

Anchorage Capital Group has priced one CLO and one CDO and refinanced one vintage CLO year to date.

The New York City-based asset manager brought two CLOs and two CDOs to market in 2015.

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