Deerpath Capital Management, a provider of customized, cash-flow based senior debt financing to lower-middle market companies across North America, closed Deerpath CLO 2022-1, a $375 million collateralized loan obligation (CLO).
Deerpath CLO 2022-1 represents the fifth CLO issued by Deerpath since 2018 and brings the firm’s total CLO assets under management to approximately $1.8 billion. Similar to its 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. Deerpath’s managed funds purchased 100% of the subordinated notes issued by the CLO. Deerpath CLO 2022-1 has a three-year reinvestment period.
“As a result of strong originations throughout 2021 and 2022, we were able to issue our fifth middle market CLO,” Derek Dubois, managing director and treasurer at Deerpath, said. “Through our programmatic CLO issuance, we continued to shift loan assets into sturdier and efficient financing, all while navigating an especially turbulent market.”
GreensLedge Capital Markets served as lead placement agent, structuring agent and bookrunner. Raymond James served as co-placement agent.