Deerpath Capital Management, a lower-middle market private credit manager in the U.S., reset and upsized Deerpath CLO 2022-1, a $724.7 million collateralized loan obligation (CLO). This marks the largest CLO and largest upsize in the firm’s history.
The CLO was originally sized at $373 million and priced in May 2022. This is the first reset and upsize of Deerpath CLO 2022-1, which represents the thirteenth CLO issued by Deerpath since 2018 and brings the firm’s total CLO assets under management to approximately $3.7 billion.
The reset is Deerpath’s fourth CLO issuance in 2024, and brings total CLO issuance to ~$2 billion in 2024. In addition to this transaction, Deerpath completed resets and upsizes of CLO 2018-1 at $402.8 million in August, Deerpath CLO 2021-1 at $402.9 million in July and issued Deerpath CLO 2024-1 at $452.6 million in April. Like all of the firm’s existing CLOs, Deerpath CLO 2022-1 is secured by a portfolio of senior secured loans to middle market, private equity-backed companies, which have been primarily directly originated by the firm.
Deerpath sold securities rated from AAA through BBB- to third-party institutional investors, including insurance companies, pension funds, banks and asset managers around the globe. Deerpath’s managed funds purchased 100% of the subordinated notes issued by the CLO. The transaction closed on Dec. 10, 2024, and the reinvestment period ends in 2029.
“Deerpath has continued to be very active in the CLO market during 2024,” Derek Dubois, managing director and treasurer of Deerpath, said. “We were able to opportunistically reset and upsize our 2022 CLO on very attractive terms for our fund investors. This marks our fourth CLO transaction in 2024 and our largest CLO transaction in our firm’s history.”
Lead placement agent GreensLedge Capital Markets and co-placement agent NatWest Markets Securities priced the upsized reset of CLO 2022-1 in November, which nearly doubles the original notional size of the CLO.
