Monroe Capital Raises $562M for 4th CLO

Monroe Capital closed a $561.8 million term debt securitization, Monroe Capital MML CLO XVI. The term financing was Monroe’s fourth collateralized loan obligation (CLO) completed since 2022 and is secured by a portfolio of middle market senior secured loans.

Monroe sold securities rated from AAA through BB-. Monroe and its affiliates kept most of the subordinated notes in the transaction. BNP Paribas served as the lead manager, placement and structuring agent and bookrunner, with Capital One acting as co-placement agent. This transaction was structured to meet and comply with both the European risk retention guidelines as well as U.S. risk retention guidelines.

“Our commitment to focusing on proprietary, directly originated middle market transactions, coupled with our differentiated investment approach to underwriting and portfolio management, enable us to continue to create significant value for all of our stakeholders,” said Chris Enas, deputy CLO portfolio manager at Monroe.

CLOs have been rising in popularity generally as the overall direct lending business continues to see assets soar. The Chicago-based firm’s CLO platform has over $4.5 billion in assets under management with 14 middle market CLO vehicles. As of July 1, 2024, Monroe has $19.5 billion in asset and a diversified private credit platform of more than 35 vehicles comprised of direct lending and opportunistic credit funds, venture debt, publicly traded and private BDCs, separately managed accounts, and CLOs.