Wellfleet Credit Partners closed a $358.5 million collateralized loan obligation, referred to as Wellfleet CLO 2016-1.

Wellfleet CLO 2016-1 represents the second CLO issuance for Wellfleet, the performing credit business of Littlejohn & Co, a private investment firm. Wellfleet’s debut $360 million CLO, Wellfleet CLO 2015-1, closed in September 2015. Wellfleet was one of 18 managers to price a CLO offering during Q1/16.

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 two classes of notes rated AAA by Fitch totaling $324 million were placed. Littlejohn Funds and 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 were appreciative of the strong support that Wellfleet CLO 2016-1 received from our existing investors and were also pleased with the addition of many new investors in this transaction. The execution of Wellfleet CLO 2016-1 certainly benefitted from investors’ recognition of the performance of Wellfleet’s 2015-vintage CLO.”

Having launched Wellfleet Credit Partners last year as part of the Littlejohn Debt Management business, the platform has completed two CLOs in the past seven months. Robert Davis, a Littlejohn partner, stated, “We are excited about the performance and the growth of the Wellfleet business. In addition, the performing credit investment area is integrating very well within Littlejohn, and we are realizing benefits in the broader Littlejohn Debt Management business.”

Morgan Stanley acted as the arranger for the CLO. Dechert acted as legal advisor.

Littlejohn & Co. is a Greenwich, CT-based private equity firm investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach.