JMP Group LLC (NYSE:JMP) Files An 8-K Entry into a Material Definitive Agreement

JMP Group LLC (NYSE:JMP) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

 

The information in Item 2.03 is incorporated herein by reference.

 

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

On April 5, 2017, JMP Group LLC (the “Company”) established, through its affiliate JMP Credit Advisors CLO IV Ltd., a Cayman Islands vehicle (the “Borrower”), a $200 million revolving credit facility (the “Facility”) with BNP Paribas to finance the acquisition of a portfolio of assets, including certain debt obligations. A subsidiary of the Company, JMP Credit Advisors LLC, will act as collateral manager with duties including the selection of assets to be acquired by the Borrower.

 

All borrowings under the Facility will be subject to the satisfaction of certain customary covenants, the accuracy of certain representations and warranties, concentration limitations and other restrictions. The Facility will be primarily secured by a portfolio of collateral that includes certain debt obligations that are eligible for acquisition by the Borrower.

 

The Borrower is subject to mandatory prepayments under the Facility upon the occurrence of certain events. In addition, the Borrower may make optional prepayments under the Facility.

 

The Facility was established to fund the purchase of a diverse pool of loans. The Facility is structured to have a six month revolving period ending October 5, 2017, and a six-month amortization period. The advance rate under the Facility is 80%, and any outstanding balances will bear interest at Libor plus 1.45% during the six month revolving period and at Libor plus 2.30% during the amortization period.

 

The Company will make a filing with the SEC in the event that a CLO transaction closes with the details of its material terms. Further, the Company intends to consolidate the loan portfolio until its maturity and expects to account for the transaction on its balance sheet as non-recourse debt.

 

 
 
 

  

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About JMP Group LLC (NYSE:JMP)

JMP Group, Inc. is a full-service investment banking and asset management firm. The Company operates in five segments: Broker-Dealer, Asset Management, Corporate Credit, Investment Income and Corporate Costs. The Broker-Dealer segment includes a range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in mergers and acquisitions, restructuring and other strategic transactions. The Asset Management segment includes the management of a range of pooled investment vehicles. The Corporate Credit segment includes the management of collateralized loan obligations and small business loans. The Investment Income segment includes income from the Company’s principal investments in public and private securities. The Corporate Costs segment includes expenses related to JMP Group Inc., the holding company, and JMP Group LLC, and comprises corporate overhead expenses and interest expense.

JMP Group LLC (NYSE:JMP) Recent Trading Information

JMP Group LLC (NYSE:JMP) closed its last trading session up +0.02 at 5.97 with 27,043 shares trading hands.

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