By Cristal Cody
Eureka Springs, Ark., July 6 – Monroe Capital LLC priced and closed on a $305 million middle-market-backed collateralized loan obligation transaction structured to meet and comply with U.S. and European risk retention guidelines, according to a market source and a company news release.
Monroe Capital MML CLO 2016-1, Ltd. sold $158 million of class A-1 floating-rate notes at Libor plus 225 basis points; $10 million of 3.25% class A-2 fixed-rate notes; $30.75 million of class B floating-rate notes at Libor plus 330 bps; $18 million of class C floating-rate notes at Libor plus 450 bps; $20.25 million of class D-1 floating-rate notes at Libor plus 675 bps; $3 million of class D-2 floating-rate notes at Libor plus 525 bps; $15 million of class E floating-rate notes at Libor plus 900 bps and $50 million of subordinated notes.
CLO manager Monroe Capital Management and its affiliates retained all of the BB securities and the subordinated notes in the transaction.
BNP Paribas Securities Corp. was the bookrunner for the deal.
The notes are due July 22, 2028. The CLO has a two-year non-call period and a four-year reinvestment period.
The transaction is secured by broadly syndicated and middle-market senior secured loans.
Proceeds will be used to purchase a portfolio of about $300 million of mostly middle-market loans.
The firm was previously in the CLO primary market in 2015 with one CLO deal.
Chicago-based Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies in the United States and Canada.
| Issuer: | Monroe Capital MML CLO 2016-1, Ltd.
|
| Amount: | $305 million
|
| Maturity: | July 22, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Monroe Capital LLC
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| Call feature: | Two years
|
| Settlement date: | July 6
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $158 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $10 million
|
| Securities: | Fixed-rate notes
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| Coupon: | 3.25%
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| Ratings: | Moody’s: Aaa
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| Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $30.75 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 330 bps
|
| Ratings: | Moody’s: Aa2
|
| Fitch: AA
|
|
|
| Class C notes
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| Amount: | $18 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 450 bps
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| Ratings: | Moody’s: A2
|
| Fitch: A
|
|
|
| Class D-1 notes
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| Amount: | $20.25 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 675 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-2 notes
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| Amount: | $3 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 525 bps
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| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $15 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 900 bps
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| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $50 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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