Wellfleet Credit Partners closed a $406.1 million collateralized loan obligation, referred to as Wellfleet CLO 2016-2. This represents the third CLO issuance for Wellfleet, the performing credit business of private investment firm Littlejohn & Co. With the completion of this CLO, Wellfleet will be managing three CLOs that total more than $1.1 billion in aggregate.

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.”

Littlejohn & Co. is a Greenwich, CT-based special situations investor investing in middle-market companies through all economic cycles.