Monroe Capital prices $305 million middle-market CLO; retains BBs, subordinated notes

By Cristal Cody

Eureka Springs, Ark., July 6 – Monroe Capital LLC brought a $305 million middle-market-backed CLO offering that meets U.S. and European risk retention guidelines, according to a market source and a company news release on Wednesday.

“We continue to see very strong interest in Monroe’s CLO platform, both in middle market and broadly syndicated senior secured loan assets,” Ted Koenig, president and chief executive officer of Monroe, said in the release. “Our investor base continues to expand in the U.S. and Europe. We are pleased to count several of our existing CLO investors in this transaction as well as many new investors.”

The CLO manager said it and its affiliates retained all of the BB securities and the subordinated notes in the deal.

Monroe Capital priced and closed on the $305 million Monroe Capital MML CLO 2016-1, Ltd. transaction via BNP Paribas Securities Corp., according to a market source and a company news release.

The CLO sold $158 million of class A-1 floating-rate notes at Libor plus 225 basis points at the top of the capital structure.

The notes are due July 22, 2028.

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.

Chicago-based Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies in the United States and Canada.

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