Deerpath Capital’s Second Collateralized Loan Obligation in 2021 Upsized to $425m

Dec 22, 2021 | News

Deerpath Capital Management, one of the largest providers of customized, cash-flow based senior debt financing to North American lower-middle market companies, announced the closing of Deerpath CLO 2021-2, a $425 million collateralized loan obligation (CLO).

This CLO represents the fourth CLO issued by Deerpath since 2018 and brings the firm’s total CLO assets under management to approximately $1.4 billion. Similar to the firm’s existing CLOs, Deerpath CLO 2021-2 is secured by a portfolio of primarily directly originated, senior secured loans to middle market private equity-backed companies.

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 percent of the subordinated notes issued by the CLO. The Fund has a four-year reinvestment period.

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Derek Dubois, Managing Director and Treasurer said, “As a result of strong originations throughout 2021, we were able to issue our fourth middle market CLO overall, and second of 2021. Through our programmatic CLO issuance, we continued to shift loan assets into sturdier and cheaper financing. This enhances our levered returns for our equity investors without creating undue risk. We were pleased by the excellence in service and execution provided by Greensledge Capital Markets and Raymond James.”

GreensLedge Capital Markets LLC served as Lead Placement Agent, Structuring Agent and Bookrunner. Raymond James served as Co-Placement Agent.

Source: Yahoo Finance

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