JMP Group, the investment banking and alternative asset management firm, has closed on its second collateralized loan obligation since the financial crisis.

The $370.5 million deal, JMP Credit Advisors CLO III, is a cash-flow transaction backed primarily by a diversified portfolio of broadly syndicated leveraged loans. It will increase JMP’s assets under management by roughly 50%, to over $1 billion, once the funds are fully deployed.

The $228 million senior tranche of notes issued by the trust is rated ‘Aaa’ by Moody’s Investors Service and ‘AA’ by Fitch Ratings. It priced at a spread of Libor plus 153 basis points.

The deal is non-callable for two years; cash flows can be reinvested for four years.

JMP Group is retaining $5.2 million, representing 13.5% of the face amount issued, of the subordinated notes, which do not bear interest and are not rated.

The transaction was executed through a private offering by means of Rule 144A and Regulation S. BNP Paribas served as placement agent and sole bookrunner.

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