By Cristal Cody
Tupelo, Miss., June 10 – Monroe Capital LLC priced $456.34 million of notes due May 22, 2031 at par in a middle-market CLO transaction that closed on Friday, according to market sources and a news release on Monday.
Monroe Capital MML CLO VIII, Ltd./Monroe Capital MML CLO VIII, LLC sold $252 million of class A senior floating-rate notes at Libor plus 170 basis points; $49.5 million of class B floating-rate notes at Libor plus 260 bps; $27 million of class C deferrable mezzanine floating-rate notes at Libor plus 360 bps; $32.85 million of class D deferrable mezzanine floating-rate notes at Libor plus 485 bps and $32.4 million of class E deferrable mezzanine floating-rate notes at Libor plus 815 bps.
The deal also included $62.59 million of subordinated notes. Monroe said it and its affiliates retained a majority of the equity tranche.
Deutsche Bank Securities Inc. was the bookrunner.
Monroe Capital affiliate Monroe Capital Asset Management LLC will manage the CLO, which has a two-year non-call period and a four-year reinvestment period.
The CLO is secured primarily by small and medium enterprise first-lien senior secured loans.
The Rule 144A and Regulation S transaction was structured to comply with European risk retention guidelines and U.S. risk retention guidelines.
Monroe Capital said the deal marks its third CLO completed in the last 15 months.
The middle-market lender and private credit asset management firm is based in Chicago.
| Issuer: | Monroe Capital MML CLO VIII, Ltd./Monroe Capital MML CLO VIII, LLC
|
| Amount: | $456.34 million
|
| Maturity: | May 22, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Monroe Capital Asset Management LLC
|
| Call feature: | Two years
|
| Pricing date: | May 10
|
| Settlement date: | June 7
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A notes
|
| Amount: | $252 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $49.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $27 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 360 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $32.85 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 485 bps
|
| Price: | Par
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $32.4 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 815 bps
|
| Price: | Par
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $62.59 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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