JMP Group Announces Closing of CLO Transaction
30 June 2017 - 8:45PM
Business Wire
JMP Group LLC (NYSE: JMP), an investment banking and alternative
asset management firm, announced today the closing of a $456.9
million collateralized loan obligation, or CLO, transaction issued
by two newly formed special purpose vehicles and backed primarily
by a diversified portfolio of broadly syndicated leveraged
loans.
The senior notes offered in the transaction are issued by JMP
Credit Advisors CLO IV Ltd. and co-issued in part by JMP Credit
Advisors CLO IV LLC and are subject to a two-year non-call period.
The capital structure of the CLO is as follows:
($ as shown)
Preliminary
Par Moody's / Fitch Maturity Class
Amount Rating Date Coupon A $
285,750,000 Aaa/AAA
July 17, 2029
L+1.37% B 54,000,000 Aa2/NR
July 17, 2029
L+1.90% C 27,000,000 A2/NR
July 17, 2029
L+2.65% D 24,750,000 Baa3/NR
July 17, 2029
L+4.15% E 22,500,000 Ba3/NR
July 17, 2029
L+6.80% Senior Subordinated Notes 10,717,500 NR/NR
July 17, 2029
L+5.75% (1) Junior Subordinated Notes 32,152,500 NR/NR
July 17, 2029
Total $ 456,870,000 (1)
On each payment date, the senior
subordinated notes will be entitled to receive the coupon stated
above and 45% of all remaining interest proceeds and all remaining
principal proceeds prior to any distributions on the junior
subordinated notes on such payment date.
JMP Group is retaining 100% of the senior and junior
subordinated notes, which are not rated.
“JMP Credit Advisors CLO IV is our third transaction since the
end of the credit crisis,” said Bryan Hamm, president of JMP Credit
Advisors. “We were 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, 2021, 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 placement agent and sole bookrunner.
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: http://www.businesswire.com/news/home/20170630005060/en/
Investor Relations ContactJMP Group LLCAndrew Palmer,
415-835-8978apalmer@jmpg.comorMedia Relations ContactsDukas
Linden Public Relations, Inc.Seth Linden,
212-704-7385seth@dukaspr.comBen Jaffe,
212-704-7385ben@dukaspr.com
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