Monroe Capital announced the closing of a $505 million term debt securitization known as Monroe Capital MML CLO XII, LTD. 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 sold securities rated from AAA through BB. Monroe 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 the 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,” said Jeremy VanDerMeid, Portfolio Manager of Monroe.  “We continue to see improving credit metrics across our portfolios and we look forward to steady growth in our middle market CLO platform.”

Monroe’s CLO platform has over $3.7 billion assets under management (“AUM”) with 12 middle market CLO vehicles including one broadly syndicated CLO under management. Monroe has a proven 15 year track record as both a middle market and broadly syndicated CLO manager with the same senior investment team and portfolio manager, having successfully navigated multiple credit cycles. Our ability to blend proprietary directly originated deal flow with the traditional middle market syndicated transactions continues to create a unique, diversified portfolio for CLO investors. In addition, Private Debt Investor recently recognized Monroe as the 2020 CLO Manager of the Year Award.

The firm has approximately $10.3 billion AUM and a diversified private credit platform of 25+ vehicles comprised of direct lending and opportunistic credit funds, a publicly traded and private BDCs, separately managed accounts, and CLOs.