JMP Group, Apidos price CLO transactions; 400 Capital Management adds CLO strategist

By Cristal Cody

Tupelo, Miss., April 9 - Two issuers sold new collateralized loan obligation offerings as CLO issuance hit more than $26 billion through the first week of April, and structured credit asset manager 400 Capital Management LLC announced a new CLO strategist for its investment and operations team, market sources reported on Tuesday.

JMP Group Inc. raised $348.8 million of senior secured notes in a CLO transaction expected to close at the end of the month, according to an 8-K filing with the U.S. Securities and Exchange Commission on Tuesday.

Apidos CLO XII/Apidos CLO XII LLC brought a CLO offering of $523 million of notes due April 15, 2025, according to a market source.

In the new hire announcement, 400 Capital Management said in a statement on Tuesday that new employees include Chi Lee, who joined as director of structured credit and CLO strategies.

Lee is responsible for the sourcing, analysis and structuring of CLOs, structured credit and related derivatives opportunities.

The New York City-based firm was established in 2008 and focuses on investments in residential and commercial mortgage and consumer asset-backed securities.

JMP prices

In the CLO market, San Francisco-based JMP Group sold $348.8 million of senior secured notes with a weighted average spread of Libor plus 186 basis points, according to the 8-K filing.

The notes priced on April 3 in a private placement and were issued by JMP Credit Advisors CLO II Ltd. and JMP Credit Advisors CLO II LLC.

Additional pricing information was not available by press time.

The notes are expected to be issued in multiple tranches, including a tranche of subordinated notes that do not bear interest. JMP, through a subsidiary, will retain $17.3 million, or 72.8% of the face value, of the subordinated notes.

The CLO is backed by a diversified portfolio of broadly syndicated leveraged loans.

The deal is expected to close on April 30.

Apidos sells $523 million

Apidos CLO XII/Apidos CLO XII LLC sold $523 million of fixed- and floating-rate notes and subordinated notes due April 15, 2025 in an offering set to close on April 18, according to a market source.

The sale included $3 million of class X senior secured floating-rate notes (Aaa//) priced at Libor plus 90 bps; $314 million of class A senior secured floating-rate notes (Aaa//) at Libor plus 110 bps; $55.25 million of class B-1 senior secured floating-rate notes at Libor plus 175 bps; $12.5 million of 3.22% class B-2 senior secured fixed-rate notes; $33.5 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 280 bps; $25.25 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 305 bps; $21 million of class E mezzanine secured deferrable floating-rate notes at Libor plus 440 bps; $12.25 million of class F mezzanine secured deferrable floating-rate notes at Libor plus 490 bps; and an equity tranche of $46.25 million of subordinated notes.

The notes have a non-call period that ends in April 2015.

Merrill Lynch, Pierce, Fenner & Smith Inc. was the underwriter.

The cash-flow CLO is backed by broadly syndicated first-lien senior secured loans and will be managed by CVC Credit Partners, LLC, a unit of London-based private equity firm CVC Capital Partners Ltd.

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