By Cristal Cody
Tupelo, Miss., Aug. 27 – Monroe Capital LLC priced $406.3 million of notes due Aug. 20, 2031 in a new middle-market CLO transaction that closed on Wednesday, according to a market source and a news release on Thursday.
Monroe Capital MML CLO X, Ltd./Monroe Capital MML CLO X, LLC sold $212 million of class A senior floating-rate notes at Libor plus 250 basis points; $38 million of class B floating-rate notes at Libor plus 320 bps; $29.6 million of class C deferrable mezzanine floating-rate notes at Libor plus 480 bps; $26.4 million of class D deferrable mezzanine floating-rate notes at Libor plus 690 bps and $22 million of class E deferrable mezzanine floating-rate notes at Libor plus 885 bps.
The deal also included $78.3 million of subordinated notes.
Deutsche Bank Securities Inc. was the placement agent.
Monroe Capital CLO Manager LLC will manage the CLO, which has an 18-month non-call period and a three-year reinvestment period.
Monroe and its affiliates retained a majority of the equity tranche, according to the news release.
The deal was structured to comply with both U.S. and European risk retention guidelines.
The CLO is secured primarily by small and medium enterprise first-lien senior secured loans.
Monroe Capital said the offering marks its fifth CLO transaction completed since March 2018.
The middle-market lender and private credit asset management firm is based in Chicago.
| Issuer: | Monroe Capital MML CLO X, Ltd./Monroe Capital MML CLO X, LLC
|
| Amount: | $406.3 million
|
| Maturity: | Aug. 20, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Middle-market CLO
|
| Placement agent: | Deutsche Bank Securities Inc.
|
| Manager: | Monroe Capital CLO Manager LLC
|
| Call feature: | 18 months
|
| Settlement date: | Aug. 26
|
|
|
| Class A notes
|
| Amount: | $212 million
|
| Securities: | Senior floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | Moody’s: Aaa
|
|
|
| Class B notes
|
| Amount: | $38 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $29.6 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 480 bps
|
| Ratings: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $26.4 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 690 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $32.4 million
|
| Securities: | Deferrable mezzanine floating-rate notes
|
| Coupon: | Libor plus 885 bps
|
| Ratings: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $78.3 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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