Monroe Capital Management is prepping its first collateralized loan obligation of the year, according to a presale report published by Standard & Poor’s

The deal, $358.45 million Monroe Capital CLO 2014-1, will be backed by a revolving pool consisting of senior secured loans to middle market obligors.  As of July 31, 2014, 47.1% of the portfolio’s collateral has been identified.

S&P assigned provisional ‘AAA’ ratings to the $177 million class A, floating-rate notes.  The notes will be marketed at three-month Libor plus 185 basis points, benefiting from a subordination of 50.62%.  The notes will mature in October 2026.

The deal will have an approximate four-year reinvestment period and two-year non-call period—in line with recently marketed CLOs.

Deutsche Bank Securities is the arranger.

Monroe Capital Management, founded in 2004, is a nationally recognized leader in the middle market and lower middle market investment community.  The company has over $1.6 billion in assets under management and is based in Chicago.

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