Littlejohn’s Wellfleet closes third CLO at $406.1 mln

Littlejohn & Co’s Wellfleet Credit Partners has closed its third collateralized loan obligation at $406.1 million. This latest CLO will be backed by a diversified portfolio of broadly syndicated senior secured loans. Citigroup Global Markets was the arranger for the CLO while Dechert LLP provided legal advice to Wellfleet.

PRESS RELEASE

GREENWICH, CT, November 3, 2016 – Wellfleet Credit Partners (“Wellfleet”) announced today the closing of a $406.1 million collateralized loan obligation (“CLO”), referred to as “Wellfleet CLO 2016-2.” Wellfleet CLO 2016-2 represents the third CLO issuance for Wellfleet, the performing credit business of Littlejohn & Co., LLC (“Littlejohn”), a private investment firm. With the completion of this CLO, Wellfleet will be managing three CLOs that total over $1.1 billion in aggregate. Wellfleet’s debut issuance, a $360.0 million CLO, Wellfleet CLO 2015-1, closed in September 2015. Wellfleet was one of only 20 managers to price three CLO offerings during this time period.

The CLO will be backed by a diversified portfolio of broadly syndicated senior secured loans. Six classes of notes rated Aaa through Ba3 by Moody’s and one class of notes rated AAA by Fitch totaling $368.0 million were placed. In addition to several non-affiliated investors, Littlejohn funds, as well as its partners, invested in the CLO. The CLO vehicle will have a two-year non-call and a four-year reinvestment period with a final maturity of 12 years. Wellfleet will retain equity through a majority-owned affiliate in order to comply with U.S. risk retention requirements.

Brian Ramsay, President of Littlejohn, stated “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.”

Class Par Size
($ in Millions) Ratings (Moody’s/Fitch) Coupon
A-1 260.00 Aaa/AAA 3m L+165
A-2 47.00 Aa2/NR 3m L+220
B 21.50 A2/NR 3m L+300
C-1 16.50 Baa3/NR 3m L+450
C-2 7.00 Baa3/NR 3m L+500
D 16.00 Ba3/NR 3m L+700
Subordinated 38.05 Not Rated
Total $406.05

Having launched Wellfleet Credit Partners last year as part of the Littlejohn Debt Management business, the platform has completed three CLOs in the past thirteen months. Richard Maybaum, a Littlejohn Partner, stated “We are excited that, similar to the other investment strategies within Littlejohn Debt Management, Wellfleet continues to expand its assets under management. Given the market environment, we are finding that our various strategies have been highly complementary.”
Citigroup Global Markets acted as the arranger for the CLO. Dechert LLP acted as legal advisor to Wellfleet.

The securities offered in the CLO have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration under the Securities Act and applicable state securities laws. This release does not constitute an offer to sell or a solicitation of an offer to buy any such securities.

About Littlejohn & Co., LLC
Littlejohn & Co. is a Greenwich, Connecticut-based deep-value, special situations investor investing in middle-market companies through all economic cycles. The firm makes a broad range of equity and debt investments in undervalued companies that can benefit from Littlejohn’s operational and strategic approach. For more information, visit www.littlejohnllc.com