Medalist Partners Finance to refinance four tranches of notes from vintage 2017 JMP CLO

By Cristal Cody

Tupelo, Miss., July 5 – Medalist Partners Corporate Finance LLC, formerly known as JMP Credit Advisors LLC, plans to refinance $456.87 million of notes due July 17, 2029 from the JMP Credit Advisors CLO IV Ltd./JMP Credit Advisors CLO IV LLC transaction, according to a notice of proposed supplemental indenture on Wednesday.

The offering includes class A-R senior secured floating-rate notes (expected ratings Aaa//AAA), class B-R senior secured floating-rate notes (expected ratings Aa2), class C-R mezzanine secured deferrable floating-rate notes (expected ratings A2) and class D-R mezzanine secured deferrable floating-rate notes (expected ratings Baa3).

BNP Paribas Securities Corp. is the refinancing placement agent.

Medalist Partners Corporate Finance, which acquired a majority stake in JMP Credit Advisors in March, will manage the CLO.

In the original $456.87 million offering issued June 29, 2017, the CLO priced $285.75 million of class A senior secured floating-rate notes at Libor plus 137 basis points; $54 million of class B senior secured floating-rate notes at Libor plus 190 bps; $27 million of class C mezzanine secured deferrable floating-rate notes at Libor plus 265 bps; $24.75 million of class D mezzanine secured deferrable floating-rate notes at Libor plus 415 bps and $22.5 million of class E mezzanine secured deferrable floating-rate notes at Libor plus 680 bps.

The deal included $10,717,500 of senior subordinated notes with a coupon of Libor plus 575 bps and $32,152,500 of junior subordinated notes as equity.

On each payment date, the senior subordinated notes are entitled to receive the coupon and 45% of all remaining interest proceeds and all remaining principal proceeds before any distributions on the junior subordinated notes. JMP Credit Advisors had retained all of the subordinated notes.

Proceeds from the refinancing will be used to redeem the outstanding class A, B, C and D notes.

The CLO is backed by a portfolio of broadly syndicated first-lien senior secured leveraged loans.

Medalist Partners Corporate is a New York-based alternative investment manager.

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