JMP closes $200 million revolving credit facility with BNP Paribas

By Marisa Wong

Morgantown, W.Va., April 6 – JMP Group LLC established a $200 million revolving credit facility on April 5 with BNP Paribas to fund the purchase of a diverse pool of loans, according to an 8-K filing with the Securities and Exchange Commission.

The facility will be primarily secured by a portfolio of collateral that includes debt obligations eligible for acquisition by the borrower, affiliate JMP Credit Advisors CLO IV Ltd.

JMP Group’s subsidiary, JMP Credit Advisors LLC, will act as collateral manager.

The facility requires mandatory prepayments if certain events occur. In addition, the borrower may make optional prepayments.

The facility is structured to have a six-month revolving period ending Oct. 5 and a six-month amortization period.

The advance rate is 80%, and any outstanding balances will bear interest at Libor plus 145 basis points during the six-month revolving period and at Libor plus 230 bps during the amortization period.

The company will make a filing with the SEC in the event that a CLO transaction closes. In addition, the company intends to consolidate the loan portfolio until its maturity and expects to account for the transaction on its balance sheet as non-recourse debt, according to Thursday’s 8-K.

JMP is a San Francisco-based investment bank and asset manager.

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