THL Credit closes $608m CLO investment

The CLO deal is the Boson-based firm’s first securitisation this year.

THL Credit Advisors has closed a $608 million collateralised loan obligation (CLO), led by RBC Capital Markets, marking its ninth post-2008 financial crisis CLO investment.

Boston-based THL announced the finalised deal on Wednesday (22 June) but did not provide any details about what assets may be underlying the CLO. The closing marks the alternative credit investment manager’s first CLO deal in 2016. It closed three CLOs in 2015, totaling $1.5 billion. THL’s largest investment last year was for $616 million, led by Credit Suisse.

“Our tradable credit platform, led by Jim Fellows and Brian Good, will now manage over $6 billion of assets following this closing through CLOs, separate accounts, our public closed-end fund and comingled funds,” Robert Hickey, the firm’s managing director and senior portfolio manager, said in a statement.

THL’s tradable credit platform also invests in secured bank loans, structured credit and high-yield securities. The firm manages $6.7 billion in assets and also operates a direct lending fund. The THL Credit BDC announced in May that it closed on $40.6 million in new investments and $14.1 million in add-ons in the first quarter 2016. Its largest was a $25.6 million first lien senior secured term loan to Hart InterCivic, an Austin -based voting election material supplier.

Chris Flynn and Sam Tillinghast (pictured) lead THL Credit as co-chief executives and co-chief investment officers. They took the roles over from founder Jim Hunt, who stepped down in July 2014. Hunt recently resurfaced as the head of mid-market credit at Kayne Anderson Capital Advisors.