JMP Group Announces Closing of CLO Transaction
30 April 2013 - 11:50PM
Business Wire
JMP Group Inc. (NYSE: JMP), an investment banking and
alternative asset management firm, announced today the closing of a
$343.8 million collateralized loan obligation, or CLO, transaction
issued by two newly formed special purpose vehicles and backed
primarily by a diversified portfolio of broadly syndicated
leveraged loans.
The senior notes offered in the transaction are issued by JMP
Credit Advisors CLO II Ltd. and co-issued in part by JMP Credit
Advisors CLO II LLC and are subject to a two and a half-year
non-call period. The capital structure of the CLO is as
follows:
($ in millions)
Preliminary Par
Moody's / S&P
Maturity
Class
Amount
Rating Date
Coupon
X $3.80
Aaa (sf)/AAA (sf)
4/15/2016
L+1.00%
A 217.60
Aaa (sf)/AAA (sf)
4/30/2023
L+1.18%
B 34.00 NR/AA (sf)
4/30/2023
L+1.75%
C 17.00 NR/A (sf)
4/30/2023
L+2.75%
D 18.70 NR/BBB (sf)
4/30/2023
L+3.85%
E 18.70 NR/BB (sf)
4/30/2023
L+5.25%
F 10.20 NR/B (sf)
4/30/2023
L+5.75%
Subordinated Notes
23.80 NR/NR
Total $343.80
JMP Group is retaining $17.3 million, representing 72.8% of the
face amount issued, of the subordinated notes, which do not bear
interest and are not rated.
“JMP Credit Advisors CLO II represents our reentry into the
securitization market,” said Bryan Hamm, President of JMP Credit
Advisors LLC. “Our ability to close this transaction is an
endorsement of the investment performance of our first CLO, JMP
Credit Advisors CLO I, and demonstrates the confidence in our team
and support of our owner and sponsor, JMP Group. We hope to be in a
position to regularly access the market and significantly grow
assets under management in the future.”
JMP Group intends to consolidate the loan investment portfolio
until its maturity and expects to account for the transaction on
its balance sheet as non-recourse debt. The CLO has a three and a
half-year reinvestment period, through October 30, 2016, 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 offering by means
of Rule 144A and Regulation S. Natixis served as placement
agent and sole bookrunner.
About JMP Group
JMP Group Inc. is a full-service investment banking and asset
management firm that provides investment banking, sales and
trading, and equity research services to corporate and
institutional clients as well as alternative asset management
products to institutional and high-net-worth investors. JMP Group
operates through three subsidiaries: JMP Securities, Harvest
Capital Strategies and JMP Credit Advisors. For more information,
visit www.jmpg.com.
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