Market Overview

JMP Group Announces Closing of CLO Transaction

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JMP Group LLC (NYSE: JMP),
an investment banking and alternative asset management firm, announced
today the closing of a $407.8 million collateralized loan obligation, or
CLO, transaction issued by two newly formed special purpose vehicles and
backed by a diversified portfolio of broadly syndicated leveraged loans.

The notes offered in the transaction are issued by JMP Credit Advisors
CLO V Ltd. and co-issued in part by JMP Credit Advisors CLO V LLC and
are subject to a two-year non-call period. The capital structure of the
CLO is as follows:

               
($ as shown) Preliminary
Par Moody's / Fitch Maturity
Class Amount Rating Date Coupon
 
A $256,000,000 Aaa/AAA July 17, 2030 LIBOR + 1.19%
B 48,000,000 Aa2/NR July 17, 2030 LIBOR + 1.90%
C 22,000,000 A2/NR July 17, 2030 LIBOR + 2.35%
D 22,000,000 Baa3/NR July 17, 2030 LIBOR + 3.35%
E 20,000,000 Ba3/NR July 17, 2030 LIBOR + 6.32%
Senior Subordinated Notes 10,000,000 NR/NR July 17, 2030 LIBOR + 6.90% (1)
Junior Subordinated Notes 29,825,000 NR/NR July 17, 2030 N/A
 

Total

$407,825,000

 

(1)   On each payment date, the Senior Subordinated Notes will be entitled
to receive the coupon stated above and 55% of all remaining interest
proceeds and all remaining principal proceeds prior to any
distributions on the Junior Subordinated Notes on such payment date.
 

A wholly owned subsidiary of JMP Group purchased $2,500,000 of the
Senior Subordinated Notes and 100% of the Junior Subordinated Notes,
which are not rated.

"With the closing of this deal, we have $1.2 billion in CLO assets under
management," said Bryan Hamm, president of JMP Credit Advisors. "We are
pleased with the execution on the transaction and look forward to
continuing on the path to becoming a widely recognized, top-tier manager
of corporate debt."

JMP Group intends to consolidate the loan investment portfolio and
expects to account for the transaction on its balance sheet as
non-recourse debt. The CLO has a four-year reinvestment period, through
July 17, 2022, that allows for the use of the proceeds from any
principal repayments on, or any sales of, collateral assets towards the
purchase of qualifying replacement assets, subject to certain conditions
and limitations.

The transaction was executed through a private exempt offering. BNP
Paribas served as initial purchaser.

About JMP Group

JMP Group LLC is a diversified capital markets firm that provides
investment banking, equity research, and sales and trading services to
corporate and institutional clients as well as alternative asset
management products and services to institutional and high-net-worth
investors. JMP Group conducts its investment banking and research, sales
and trading activities through JMP Securities; its hedge fund, venture
and private capital, and credit management activities though Harvest
Capital Strategies, JMP Asset Management and JMP Credit Advisors; and
the management of Harvest Capital Credit Corporation (NASDAQ:HCAP), a
business development company, through HCAP Advisors. For more
information, visit www.jmpg.com.

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