By Cristal Cody
Tupelo, Miss., Jan. 17 – Wellfleet Credit Partners, LLC priced $409 million of 13-year notes in a new collateralized loan obligation offering, according to a market source and a company news release on Wednesday.
Wellfleet CLO 2017-3, Ltd./Wellfleet CLO 2017-3 LLC sold $260 million of class A-1 floating-rate notes at Libor plus 115 basis points and $44 million of class A-2 floating-rate notes at Libor plus 150 bps.
The CLO priced $22 million of class B floating-rate notes at Libor plus 195 bps, $24 million of class C floating-rate notes at Libor plus 275 bps, $18 million of class D floating-rate notes at Libor plus 555 bps and $41 million of subordinated notes.
BofA Merrill Lynch arranged the offering.
Wellfleet Credit Partners will manage the CLO.
The notes have a two-year non-call period and a five-year reinvestment period.
The deal is collateralized primarily by broadly syndicated senior secured corporate loans.
Proceeds from the offering will be used to purchase a portfolio of about $400 million of mostly first-lien senior secured loans.
Wellfleet Credit Partners priced three CLOs in 2017. The latest deal is the firm’s sixth CLO transaction.
The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.
| Issuer: | Wellfleet CLO 2017-3, Ltd./Wellfleet CLO 2017-3 LLC
|
| Amount: | $409 million
|
| Maturity: | Jan. 17, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Merrill Lynch
|
| Manager: | Wellfleet Credit Partners, LLC
|
| Call feature: | Two years
|
| Pricing date: | Dec. 7
|
| Settlement date: | Jan. 17
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $260 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 115 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $44 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 150 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class B notes
|
| Amount: | $22 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 195 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class C notes
|
| Amount: | $24 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class D notes
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| Amount: | $18 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 555 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity
|
| Amount: | $41 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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