Littlejohn's Wellfleet Credit Partners Raises $557M For Second CLO Of 2017

Sep 26 2017 | 4:45pm ET

Littlejohn & Co.’s WellFleet Credit Partners affiliate has closed its fifth collateralized loan obligation (and second of this year) at $557 million after being upsized an additional $100 million due to high demand. 

The new CLO, named Wellfleet CLO 2017-2, brings Wellfleet’s total AUM to more than $2 billion, according to a statement. After forming the Wellfleet platform in 2015 as part of the Littlejohn Debt Management business, Wellfleet has now completed five CLOs in two years.

2017-2 will be backed by a diversified portfolio of broadly syndicated senior secured loans, the statement continued. 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. The CLO will have a two-year non-call and a four-year reinvestment period with a final maturity of 12 years, and Wellfleet will retain equity through a majority-owned affiliate in order to comply with U.S. risk retention requirements.

Littlejohn funds and its partners also invested in the CLO, the statement added. Citigroup Global Markets acted as the arranger for the CLO, while Dechert LLP acted as legal advisor to Wellfleet.

Based in Greenwich, Connecticut and founded in 1996, Littlejohn is a private investment firm focused on private equity, special situations and performing credit opportunities primarily in middle market companies. The company has more than $5 billion in assets under management. 

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