By Cristal Cody
Tupelo, Miss., Nov. 20 – Monroe Capital LLC priced $455.75 million of notes due Nov. 22, 2030 in a new middle-market CLO transaction, according to a market source and a news release on Tuesday.
Monroe Capital MML CLO VII, Ltd./Monroe Capital MML CLO VII, LLC sold $4.5 million of class X senior floating-rate notes; $222 million of class A-1 senior floating-rate notes; $30 million of A-2 senior fixed-rate notes; $46,125,000 of class B floating-rate notes; $27 million of class C deferrable mezzanine floating-rate notes; $34,875,000 of class D deferrable mezzanine floating-rate notes and $33.75 million of class E deferrable mezzanine floating-rate notes.
The deal also included two classes of subordinated notes as equity tranches – $47.5 million of subordinated 1 notes and $10 million of subordinated 2 notes. Monroe Capital said in the release that it retained a majority of the subordinated notes.
The AAA-rated tranches priced with a combined discount margin of Libor plus 149 basis points.
BNP Paribas Securities Corp. was the bookrunner.
Monroe Capital Asset Management LLC will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
The deal was structured to comply with both U.S. and European risk retention guidelines.
The CLO is secured mostly by a portfolio of middle-market senior secured loans.
Monroe Capital has closed on three CLO deals in the last 13 months.
The middle-market lender and private credit asset management firm is based in Chicago.
| Issuer: | Monroe Capital MML CLO VII, Ltd./Monroe Capital MML CLO VII, LLC
|
| Amount: | $455.75 million
|
| Maturity: | Nov. 22, 2030
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | Monroe Capital Asset Management LLC
|
| AAA discount margin: | Libor plus 149 bps
|
| Call feature: | Two years
|
| Pricing date: | Oct. 4
|
| Settlement date: | Nov. 15
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $4.5 million
|
| Securities: | Senior floating-rate notes
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1 notes
|
| Amount: | $222 million
|
| Securities: | Senior floating-rate notes
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-2 notes
|
| Amount: | $30 million
|
| Securities: | Senior fixed-rate notes
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $46,125,000
|
| Securities: | Floating-rate notes
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $27 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $34,875,000
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $33.75 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $47.5 million
|
| Securities: | Subordinated 1 notes
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $10 million
|
| Securities: | Subordinated 2 notes
|
| Ratings: | Non-rated
|
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