JMP Group Announces Closing of CLO Transaction
July 27 2018 - 6:45AM
Business Wire
JMP Group LLC (NYSE: JMP), an investment banking and alternative
asset management firm, announced today the closing of a $407.8
million collateralized loan obligation, or CLO, transaction issued
by two newly formed special purpose vehicles and backed by a
diversified portfolio of broadly syndicated leveraged loans.
The notes offered in the transaction are issued by JMP Credit
Advisors CLO V Ltd. and co-issued in part by JMP Credit Advisors
CLO V LLC and are subject to a two-year non-call period. The
capital structure of the CLO is as follows:
($ as
shown)
Preliminary Par Moody's / Fitch
Maturity Class Amount Rating
Date Coupon A $256,000,000 Aaa/AAA July 17,
2030 LIBOR + 1.19% B 48,000,000 Aa2/NR July 17, 2030 LIBOR + 1.90%
C 22,000,000 A2/NR July 17, 2030 LIBOR + 2.35% D 22,000,000 Baa3/NR
July 17, 2030 LIBOR + 3.35% E 20,000,000 Ba3/NR July 17, 2030 LIBOR
+ 6.32% Senior Subordinated Notes 10,000,000 NR/NR July 17, 2030
LIBOR + 6.90% (1) Junior Subordinated Notes 29,825,000 NR/NR July
17, 2030 N/A
Total
$407,825,000
(1) On each payment date, the Senior Subordinated Notes will
be entitled to receive the coupon stated above and 55% of all
remaining interest proceeds and all remaining principal proceeds
prior to any distributions on the Junior Subordinated Notes on such
payment date.
A wholly owned subsidiary of JMP Group purchased $2,500,000 of
the Senior Subordinated Notes and 100% of the Junior Subordinated
Notes, which are not rated.
“With the closing of this deal, we have $1.2 billion in CLO
assets under management,” said Bryan Hamm, president of JMP Credit
Advisors. “We are pleased with the execution on the transaction and
look forward to continuing on the path to becoming a widely
recognized, top-tier manager of corporate debt.”
JMP Group intends to consolidate the loan investment portfolio
and expects to account for the transaction on its balance sheet as
non-recourse debt. The CLO has a four-year reinvestment period,
through July 17, 2022, that allows for the use of the proceeds from
any principal repayments on, or any sales of, collateral assets
towards the purchase of qualifying replacement assets, subject to
certain conditions and limitations.
The transaction was executed through a private exempt offering.
BNP Paribas served as initial purchaser.
About JMP Group
JMP Group LLC is a diversified capital markets firm that
provides investment banking, equity research, and sales and trading
services to corporate and institutional clients as well as
alternative asset management products and services to institutional
and high-net-worth investors. JMP Group conducts its investment
banking and research, sales and trading activities through JMP
Securities; its hedge fund, venture and private capital, and credit
management activities though Harvest Capital Strategies, JMP Asset
Management and JMP Credit Advisors; and the management of Harvest
Capital Credit Corporation (NASDAQ: HCAP), a business development
company, through HCAP Advisors. For more information, visit
www.jmpg.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180727005007/en/
Investor Relations ContactJMP Group LLCAndrew Palmer,
415-835-8978apalmer@jmpg.comorMedia Relations ContactsDukas
Linden Public Relations, Inc.Zach Leibowitz,
646-722-6528zach@dukaspr.comorAlyssa Noud,
646-722-6525alyssa@dukaspr.com
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