By Cristal Cody
Tupelo, Miss., Aug. 31 – Wellfleet Credit Partners, LLC priced $557 million of notes due Oct. 20, 2029 in a new collateralized loan obligation offering, according to market sources.
Wellfleet CLO 2017-2, Ltd./Wellfleet CLO 2017-2 LLC sold $354.75 million of class A-1 floating-rate notes at Libor plus 125 basis points and $63.25 million of class A-2 floating-rate notes at Libor plus 175 bps.
The CLO priced $27.5 million of class B floating-rate notes at Libor plus 230 bps; $35.75 million of class C floating-rate notes at Libor plus 340 bps; $24.75 million of class D floating-rate notes at Libor plus 675 bps and $51 million of subordinated notes.
Citigroup Global Markets Inc. arranged the offering.
Wellfleet Credit Partners will manage the CLO.
The notes have 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 portfolio of about a $550 million of mostly senior secured leveraged loans.
Wellfleet Credit Partners has priced two CLOs year to date. The firm 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 2017-2, Ltd./Wellfleet CLO 2017-2 LLC
|
| Amount: | $557 million
|
| Maturity: | Oct. 20, 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: | Aug. 14
|
| Settlement date: | Sept. 26
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $354.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $63.25 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $27.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $35.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 340 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $24.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $51 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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