Debt

Bond

Payable

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

8.00% Senior Notes due 2023	$	-		$	36,000
7.25% Senior Notes due 2027		50,000			50,000
6.875% Senior Notes due 2029		36,000			-
Total outstanding principal	$	86,000		$	86,000
Less: Debt issuance costs		(3,416	)		(2,428	)
Less: Consolidation elimination		-			(75	)
Total bond payable, net	$	82,584		$	83,497

September

26,

2019,

the Company issued

$36.0

million of

6.875%

senior notes (the

“2019

Senior Notes”). The

2019

Senior Notes will mature on

September 30, 2029,

may

be redeemable in whole or in part at any time or from time to time at JMP Group LLC’s option on or after

September 30, 2021,

at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The notes bear interest at a rate of

6.875%

per year, payable quarterly on

March 30,

June 30,

September 30,

and

December 30

of each year, and commencing on

December 30, 2019.

September 27, 2019,

the Company announced JMP Group Inc.'s intention to redeem the JMP Group Inc. outstanding

$25.0

million principal amount of

8.00%

senior notes (the

“2013

Senior Notes”) on

October 28, 2019.

The Company opted to pay the principal and contractually owed interest to the trustee, U.S. Bank National Association, in order to satisfy and discharge the debt as of

September 27, 2019.

September 27, 2019,

the Company deposited sufficient funds with the trustee to satisfy and discharge the

2013

Senior Notes and the trustee acknowledged such satisfaction and discharge. In connection with the redemption, the Company recorded losses on early retirement of debt related to unamortized bond issuance costs of

$0.5

million and recognized an additional

$0.2

million of interest expense on the accelerated repayment during the year ended

December 31, 2019.

July 18, 2019,

JMP Group Inc. redeemed

$11.0

million principal amount of its issued and outstanding

2013

Senior Notes due

2023.

The redemption price was

$25

per unit plus accrued and unpaid interest.

The

7.25%

senior notes due

2027

(the

“2017

Senior Notes”) and the

2019

Senior Notes (collectively with the

2017

Senior Notes the “Senior Notes”) were issued by JMP Group Inc. and JMP Group LLC, respectively, pursuant to indentures with U.S. Bank National Association, as trustee. The Senior Notes indentures contain 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 and JMP Group LLC'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

December 31, 2019

and

2018,

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

The future scheduled principal payments of the bond payable as of

December 31, 2019

are as follows:

(In thousands)

2020	$	-
2021		-
2022		-
2023		-
2024		-
Thereafter		86,000
Total	$	86,000

Note Payable,

Lines of Credit and CLO Warehouse Credit Facility

(In thousands)	Outstanding Balance
	December 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 December 31, 2020		5,983		-
Note payable		829		829
Total note payable, lines of credit and CLO warehouse credit facility	$	6,812	$	23,329

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

April 30, 2014,

was entered by and between JMP Holding LLC (“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. The Credit Agreement has been amended throughout its life to make various updates, clarifications and conforming changes to reflect the corporate structure and business changes of the Company since the Credit Agreements execution. The Credit Agreement provides a

$25.0

million revolving line of credit (the “Revolver”) through

December 31, 2020.

On such date, if the revolving period has

not

been previously extended, any outstanding amounts under the Revolver would convert to a term loan (the “Converted Term Loan”). The Converted Term Loan must be repaid in

quarterly installments commencing on

January 1, 2021,

with each of the

first

six

installments being equal to

3.75%

of the principal amount of the Converted Term Loan and each of the next

six

installments being equal to

5.0%

of the principal amount of the Converted Term Loan. A final payment of all remaining principal and interest due under the Converted Term Loan must be made at the earlier of: (a)

December 31, 2023;

or (b) if certain liquidity requirements are

not

satisfied by the Company, the date that is last day of the fiscal quarter ending most recently (but

less than

days) prior to the earliest maturity date of any senior unsecured notes issued by JMP Group Inc. or JMP Group LLC then outstanding. The Revolver bears interest at a rate of LIBOR plus

225

bps and the Company’s outstanding balance on the Credit Agreement was

$6.0

million and

zero

as of

December 31, 2019

and

December 31, 2018,

respectively. As of

December 31, 2019,

the Company had letters of credit outstanding under the Revolver supporting office lease obligations of approximately

$1.1

million in the aggregate.

The Credit Agreement provides that the Revolver

may

be used, on a revolving basis, to fund specified permitted investments in collateralized loan obligation vehicles. In addition, up to

$5.0

million of the Revolver

may

be used, on a revolving basis, to fund other types of permitted investments and acquisitions and for working capital. 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. The Credit Agreement also includes an event of default for a “change of control” that tests, in part, the composition of our ownership and an event of default if

three

or more of the members of the Company’s executive committee fail to be involved actively on an ongoing basis in the management of the Company or any of its subsidiaries. A violation of any

one

of these covenants could result in a default under the Credit Agreement, which would permit CNB to terminate our Revolver or Converted Term Loan and require the immediate repayment of any outstanding principal and interest. In addition, our subsidiaries are restricted under the Credit Agreement under certain circumstances from making distributions to us if an event of default has occurred under the Credit Agreement. As of

December 31, 2019

and

2018,

we were in compliance with the loan covenants.

JMP Holding's obligations under the Credit Agreement are guaranteed by all of its wholly owned subsidiaries (other than JMP Securities and certain dormant subsidiaries) and are secured by substantially all of its and the guarantors' assets. In addition, we have entered into a limited recourse pledge agreement whereby we have granted a lien on all of our equity interests in JMP Investment Holdings and JMPAM to secure JMP Holding's obligations under the Credit Agreement.

Separately, under a Revolving Note and Cash Subordinate Agreement, JMP Securities holds a

$20.0

million revolving line of credit with CNB to be used for regulatory capital purposes during its securities underwriting activities. The unused portion of the line accrued an unused fee at the rate of

0.25%

per annum, payable monthly. On

June 6, 2020,

any outstanding amount under the line will convert to a term loan maturing the following year. There was

borrowing on this line of credit as of

December 31, 2019

December 31, 2018.

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

The borrowing under the CLO VI warehouse facility were

zero

and

$22.5

million as of

December 31, 2019

and

2018,

respectively. As of

December 31, 2018,

the CLO VI warehouse facility had 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

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

March 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 Statements of Financial Condition as of

December 31 2019.

See Note

for additional information on deconsolidation.

January 9, 2018,

an affiliate purchased a

$0.8

million note issued by the Company. The note bears interest at a rate of

12.5%

per annum and matures

November 20, 2022.

As of

December 31, 2019,

the carrying value of the note payable was

$0.8

million.