JMP Group LLC established a warehouse loan and security agreement with Jefferies Leveraged Credit Products LLC in an aggregate principal amount of about $332.2 million.

The loan agreement was formed through JMP Group affiliate JMP Credit Advisors CLO III(R) Ltd., a Cayman Islands vehicle. The loan agreement will fund JMP Credit Advisors CLO III(R)'s acquisition of a portfolio of loans and related rights from JMP Credit Advisors CLO III Ltd.

The proceeds from the sale of the portfolio of loans and related rights will be applied to redeem all of the secured notes of JMP Credit Advisors CLO III on or about Feb. 9.

The loan agreement was established to permit to purchase the portfolio of loans and related rights on the redemption date from JMP Credit Advisors CLO III.

U.S. Bank NA serves as trustee.