Monroe Capital closed a $505 million term debt securitization known as Monroe Capital MML CLO XII. The term financing was Monroe’s seventh CLO completed since March 2018 and is secured by a portfolio of middle-market senior secured loans.
Monroe Capital sold securities rated from AAA through BB. Monroe Capital and its affiliates retained a majority of the subordinated notes in the transaction. SMBC served as the lead manager, structuring agent and bookrunner, with Raymond James serving as co-manager. This transaction was structured to meet and comply with both European risk retention guidelines as well as U.S. risk retention guidelines.
“This was our first middle-market CLO with SMBC as lead arranger and we were very pleased with the execution. We received very strong demand from new and existing investors around the world and we upsized the transaction to $505 million,” Jeremy VanDerMeid, portfolio manager of Monroe Capital, said. “We continue to see improving credit metrics across our portfolios and we look forward to steady growth in our middle-market CLO platform.”