Deerpath Capital Management, which provides senior debt financing to lower-middle market companies, has closed its latest CLO at $325 million. Deerpath CLO 2020-1 will primarily invest in leveraged loans to middle-market private equity-backed companies. GreensLedge Capital Markets LLC was lead placement agent, structuring agent and bookrunner.
(New York) April 14, 2020 — Deerpath Capital Management, LP announced the closing of Deerpath CLO 2020-1, a $325 million collateralized loan obligation (CLO). This CLO represents the second CLO issued by Deerpath in the last 16 months and brings the company’s total CLO assets under management to approximately $635 million. Deerpath CLO 2020-1 will primarily invest in leveraged loans to middle market private equity-backed companies.
The Fund has a three-year reinvestment period and a collateral pool comprised of a diversified portfolio of senior secured loans. Deerpath sold securities rated from AAA through BBB-. Deerpath managed funds purchased 100 percent of the subordinated notes issued by the CLO. GreensLedge Capital Markets LLC served as Lead Placement Agent, Structuring Agent and Bookrunner. Raymond James served as Co-Placement Agent.
Derek Dubois, Managing Director and Treasurer said, “Our second middle market CLO demonstrates our continued success in the capital markets. This transaction gives our fund investors access to sturdy, conservatively structured leverage at attractive pricing. We continue to broaden and diversify our investor base by introducing new institutional investors to our direct lending platform and welcomed the participation of repeat investors from our previous CLO offering. We were very pleased by the quality of execution from the Greensledge Capital Markets and Raymond James teams and the level of support we received from the investment community through challenging market conditions.”
Deerpath Capital is a leading provider of customized, cash flow-based senior debt financing to lower-middle market companies. Founded in 2007, Deerpath has completed over 400 investments, deploying $3.3 billion of invested capital across a broad range of industries, investment products and transaction types in the US. Deerpath has offices in New York, Boston, Chicago, Fort Lauderdale and Los Angeles. For more information, please visit www.deerpathcapital.com.