Debt

Bond

Payable

(In thousands)	March 31, 2019			December 31, 2018

8.00% Senior Notes due 2023	$	36,000		$	36,000
7.25% Senior Notes due 2027		50,000			50,000
Total outstanding principal	$	86,000		$	86,000
Less: Debt issuance costs		(2,325	)		(2,428	)
Less: Consolidation elimination		(75	)		(75	)
Total bond payable, net	$	83,600		$	83,497

The

8.00%

Senior Notes due

2023

and the

7.25%

Senior Notes due

2027

(collectively, the “Senior Notes”) were issued pursuant to indentures with U.S. Bank National Association, as trustee. The

8.00%

Senior Notes indentures contain a minimum liquidity covenant that obligates JMP Group Inc. to maintain liquidity of at least an amount equal to the lesser of (i) the aggregate amount due on the next

eight

scheduled quarterly interest payments on the

8.00%

Senior Notes, or (ii) the aggregate amount due on all remaining scheduled quarterly interest payments on the

$36

million

8.00%

Senior Notes until the maturity of the Senior Notes. The Senior Notes indenture also contains customary event of default and cure provisions. If an uncured default occurs and is continuing, the trustee or the holders of at least

25%

in principal amount of the Senior Notes

may

declare the Senior Notes immediately due and payable. The Senior Notes are JMP Group Inc.’s general unsecured senior obligations, and rank equally with all existing and future senior unsecured indebtedness and are senior to any other indebtedness expressly made subordinate to the notes. At both

March 31, 2019

and

December 31, 2018,

the Company was in compliance with the debt covenants in the indentures.

The future scheduled principal payments of the debt obligations as of

March

31,

2019

were as follows:

(In thousands)

2019	$	-
2020		-
2021		-
2022		-
2023		36,000
Thereafter		50,000
Total	$	86,000

Note Payable,

Lines of Credit and Credit Facilities

(In thousands)	Outstanding Balance
	March 31, 2019		December 31, 2018

$100 million, CLO VI warehouse credit facility through October 11, 2021		-		22,500
$25 million, JMP Holding credit agreement through June 4, 2019		-		-
$20 million, JMP Securities revolving line of credit through June 6, 2019		-		-
Note payable		829		829
Total credit facilities and note payable	$	829	$	23,329

The Company's Credit Agreement ("the Credit Agreement") dated as of

April 30, 2014,

was entered by and between JMP Holding and City National Bank ("CNB"). The Credit Agreement contains financial and other covenants, including, but

not

limited to, limitations on debt, liens and investments, as well as the

maintenance of certain financial covenants. A violation of any

one

of these covenants could result in a default under the Credit Agreement, which would permit CNB to terminate the Company’s note and require the immediate repayment of any outstanding principal and interest. At both

March 31, 2019

and

December 31, 2018,

the Company was in compliance with the loan covenants. As of

March 31, 2019

and

December 31, 2018,

the outstanding balance on the Credit Agreement wa

s both zero, res

pectively

The

$25

million line of credit has a LIBOR plus

225

bps interest rate, which will convert to a term loan after

June 4, 2019,

and will be repaid in quarterly installments of

3.75%

of funded debt for the

first

two

years,

5.00%

of funded debt for the next

two

years, and the remainder due at maturity.

JMP Securities holds a

$20

million revolving line of credit with CNB to be used for regulatory capital purposes during its securities underwriting activities.

The line of credit bears interest at a rate to be agreed upon at the time of advance between the Company and CNB.

The net loans collateralizing the CLO VI warehouse facility was

zero

and

$26.0

million as of

March 31, 2019

and

December 31, 2018,

respectively. The CLO VI warehouse facility has a market standard advance rate and the outstanding balances bear interest at LIBOR plus

1.250%

until

October 11, 2021,

which marks the end of the revolving period on the facility. The facility has a

month amortization period after the revolving period in which the outstanding balances bear standard market interest rate based on LIBOR. During the

three

-month period ended

March 31, 2019,

the Company deconsolidated its investments in the CLO VI warehouse and as a result,

longer has the CLO VI warehouse credit facility on its Consolidated Statement of Financial Condition as of

March 31, 2019.

See Note

for additional information on deconsolidation.

January 9, 2018,

an affiliate purchased a

$0.8

million note from the Company. The loan bears interest at a rate of

12.5%

per annum and matures

November 20, 2022.

As of

March 31, 2019,

the carrying value of the note payable

was

$0.8

million.