JMP Group Announces Closing of CLO Transaction
30 September 2014 - 2:00PM
Business Wire
JMP Group Inc. (NYSE:JMP), an investment banking and alternative
asset management firm, announced today the closing of a $370.5
million collateralized loan obligation, or CLO, transaction issued
by two newly formed special purpose vehicles and backed primarily
by a diversified portfolio of broadly syndicated leveraged
loans.
The senior notes offered in the transaction are issued by JMP
Credit Advisors CLO III Ltd. and co-issued in part by JMP Credit
Advisors CLO III LLC and are subject to a two-year non-call period.
The capital structure of the CLO is as follows:
($ in millions)
Preliminary
Par Moody's / Fitch Maturity
Class Amount Rating Date Coupon
A
$228.00
Aaa /AAA 9/30/2025 L+1.53% B 41.70 Aa2/NR 9/30/2025 L+2.05% C 22.50
A2/NR 9/30/2025 L+2.90% D 21.60 Baa3/NR 9/30/2025 L+5.10% E 18.30
Ba2/NR 9/30/2025 L+7.35% Subordinated Notes 38.40 NR/NR
Total $370.50
JMP Group is retaining $5.2 million, representing 13.5% of the
face amount issued, of the subordinated notes, which do not bear
interest and are not rated.
“JMP Credit Advisors CLO III is our second transaction since the
end of the credit crisis and will increase our assets under
management by roughly 50%, to over $1 billion, once the funds are
fully deployed,” 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
at least through the end of the non-call period and expects to
account for the transaction on its balance sheet as non-recourse
debt. The CLO has a four-year reinvestment period, through October
17, 2018, 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. BNP Paribas served as placement
agent and sole bookrunner.
About JMP Group
JMP Group Inc. is an 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 and services 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.
Investor Relations ContactJMP Group Inc.Andrew Palmer,
415-835-8978apalmer@jmpg.comorMedia Relations ContactDukas
Public RelationsSeth Linden, 212-704-7385seth@dukaspr.comZach
Leibowitz, 212-704-7385zach@dukaspr.com
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