Article/Intelligence
Blue Owl Signals Redemption of 2015 Wellfleet CLO; CLO Asset’s FCF Yield Runs Below Market Average at 2.61%, Portfolio Analytics Data Shows
Blue Owl Capital is considering a partial redemption of its 2015-vintage deal, Wellfleet CLO 2015-1, according to regulatory filings. The redemption date is scheduled for Monday, April 21. The deal was the debut CLO issuance from Wellfleet Credit Partners, which Blue Owl acquired in 2022.
The $17.21 million single-A tranche, $23.03 million triple-B tranche and double-B tranche are slated to be redeemed after the payment to the equityholders. U.S. Bank acts as the trustee of the CLO.
Wellfleet CLO 2015-1 was priced via Morgan Stanley on Aug. 27, 2015, and closed on Sept. 24, 2015. The CLO was reset in 2019 when its reinvestment period was renewed for two years ending in July 2021.
According to Octus’, formerly Reorg’s, Portfolio Analytics platform, Wellfleet CLO 2015-1 has a free cash flow yield of 0.92%, compared with a weighted average of 2.61% across Blue Owl’s Wellfleet shelf and a U.S. market average of 2.52%. Meanwhile, Wellfleet CLO 2015-1’s first lien net leverage of 4.29x is the highest among the 13 CLOs on Blue Owl’s Wellfleet shelf, which averages 3.95x. The U.S. market average first lien net leverage is 4.09x.
Additional stats on Blue Owl’s U.S. CLO holdings across its Wellfleet CLOs, Wellfleet CLO 2015-1, and the U.S. market average are shown in the chart below:
The CLO’s first lien net leverage has run above the U.S. market average since the second quarter of 2021. Meanwhile, the CLO’s FCF yield has experienced volatility, and has run below the U.S. market average following a sharp downturn in 2024. See the charts below:
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