Monroe Capital Completes $400 Million Loan Securitization.CHICAGO -- Monroe Capital LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a Chicago-based specialty finance company, announced the closing of a $400 million collateralized loan obligation Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. (CLO CLO See: Collateralized Loan Obligation. ) as of year-end 2006. The MC Funding Ltd. (Series 2006-1) CLO is secured by a diversified portfolio of middle-market loans originated by Monroe Capital. "This is an exciting milestone for Monroe. It validates the quality of our team and our success in the market," said Theodore L. Koenig, President and Chief Executive Officer. "This transaction expands our capabilities and our capital base and gives us greater flexibility and strength as we kick off 2007." Monroe Capital Management LLC acts as the manager of the CLO which has a five-year reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. period. Wachovia Securities Wachovia Securities, located in Richmond, Virginia (soon to be moved to St. Louis), is the third largest brokerage firm in the United States as of 2006 with $689 billion retail client assets under management. It is a subsidiary of Wachovia Corporation. acted as the lead manager and as structuring and placement agent. Mary Katherine Dubose, Managing Director at Wachovia, noted that, "Wachovia is excited to team with Monroe. The Monroe platform was very well received by investors as reflected in very strong execution as a first time issuer." The collateralized loan portfolio is comprised of mostly middle-market structured finance assets. The class A through E notes are rated by two rating agencies. Monroe Capital is a specialty finance company and one of the most active providers of junior secured and senior debt to middle-market companies. Monroe Capital specializes in originating, structuring and providing customized one-stop financings to U.S. and Canadian borrowers in amounts typically ranging from $3 million to $50 million with the ability to agent and syndicate larger transactions. Monroe is committed to being a value-added and user-friendly partner to owners, senior management and transaction sponsors. Investment types include senior and junior secured debt as well as bridge loans, flexible acquisition facilities, mezzanine or last-out second loans that stretch a company's debt capacity, acquisitions of distressed debt distressed debt Debt with low junk status and a market price substantially below par value, often pennies on the dollar. Investors sometimes buy distressed debt on the possibility that management can renegotiate loan agreements and keep the issuer out of , and equity co-investments An equity co-investment is a small minority investment made alongside a private equity investor, or financial sponsor, in an LBO, a recapitalization, or a growth capital transaction. . Monroe Capital prides itself on its flexible investment approach and its ability to close and fund transactions quickly. To learn more about Monroe Capital, visit www.monroecap.com. |
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