Deerpath Capital Successfully Resets 2020 Collateralized Loan Obligation
NEW YORK, July 31, 2023 /PRNewswire/ — Deerpath Capital Management, LP (“Deerpath”), one of the largest private credit managers in the U.S. lower-middle market, has announced the reset and upsize of Deerpath CLO 2020-1, a $403.3 million collateralized loan obligation (CLO).
The CLO was originally sized at $330 million and priced in March 2020. This upsize and repricing represents the eighth CLO issued by Deerpath since 2018 and brings the firm’s total CLO assets under management to approximately $2.4 billion.
This is Deerpath’s second CLO issuance in 2023, having closed Deerpath CLO 2023-1 at $504 million in March. Like all of the firm’s existing CLOs, Deerpath CLO 2020-1 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 percent of the subordinated notes issued by the CLO. The transaction is set to close on July 31, 2023 and the reinvestment period is four (4) years.
Derek Dubois, Managing Director and Treasurer said, “Deerpath has continued to access the CLO market during 2023, despite the ongoing volatility in the broader markets. This is our second CLO transaction of 2023. We are very excited to have locked in attractive long term portfolio financing for our fund investors.”
GreensLedge Capital Markets LLC served as Lead Placement Agent, Structuring Agent and Bookrunner. NatWest Markets served as Co-Placement Agent.
About Deerpath Capital Management, LP
Founded in 2007, Deerpath Capital Management, LP is one of the largest providers of customized, cash-flow based senior debt financing to lower-middle market companies across diverse industries. The firm currently manages approximately $6 billion of assets under management. For more information, please visit www.deerpathcapital.com.
Media:
Aidan O’Connor
Prosek Partners (On behalf of Deerpath Capital)
(646) 818-9283
aoconnor@prosek.com
SOURCE Deerpath Capital Management, LP