Deerpath Capital Management, a $8B AUM private credit manager focused on lending to the U.S. lower-middle market, announced a reset and upsize of Deerpath CLO 2018-1, a $402.8 million collateralized loan obligation (CLO).

The CLO was originally sized at $309.8 million and priced in December 2018. This is the second reset and upsize of Deerpath CLO 2018-1, which was previously reset in July 2022.  This represents the twelfth CLO issued by Deerpath since 2018 and brings the firm's total CLO assets under management to approximately $3.3 billion.

This is Deerpath's third CLO issuance in 2024, having reset Deerpath CLO 2021-1 at $402.9 million in July and issued a new $453MM CLO in April. All the firm's existing CLOs, including Deerpath CLO 2018-1, are 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 globally, 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 August 27, 2024, and the reinvestment period is 4 years.

Derek Dubois, Managing Director and Treasurer said, "Deerpath has continued to take advantage of a very attractive CLO market and opportunistically reset and upsized our 2018 CLO on very accretive terms.  By doing so, Deerpath reduced the cost of borrowing attached to the 2018-1 deal for its fund investors from the previous reset in 2020. This marks our third CLO transaction in 2024 and continues to demonstrate the programmatic approach to our CLO management."

GreensLedge Capital Markets LLC served as Lead Placement Agent, Co-Structuring Agent and Bookrunner and KeyBanc Capital Markets Inc. served as Co-structuring Agent.