By Cristal Cody
Tupelo, Miss., June 13 – KKR Financial Advisors II, LLC priced $644.3 million of notes due Jan. 22, 2029 at par in a refinancing of the KKR CLO 16 Ltd./KKR CLO 16 LLC transaction, according to a market source.
The CLO sold $456 million of class A-1-R senior secured floating-rate notes at Libor plus 125 basis points, $76 million of class A-2-R senior secured floating-rate notes at Libor plus 180 bps, $36.6 million of class B-1-R senior secured deferrable floating-rate notes at Libor plus 250 bps, $47.1 million of class C-R senior secured deferrable floating-rate notes at Libor plus 350 bps and $29.6 million of class D-R senior secured deferrable floating-rate notes at Libor plus 675 bps.
Citigroup Global Markets Inc. was the placement agent.
The refinanced CLO has a one-year non-call period and a 2.5-year reinvestment period.
In the original $711.3 million transaction issued Dec. 15, 2016, the CLO sold $455 million of class A-1 senior secured floating-rate notes at Libor plus 149 bps; $76 million of class A-2 senior secured floating-rate notes at Libor plus 180 bps; $27.1 million of class B senior secured deferrable floating-rate notes at Libor plus 260 bps; $9.5 million of 4.8% class B-2 senior secured deferrable fixed-rate notes; $47.1 million of class C senior secured deferrable floating-rate notes at Libor plus 410 bps; $29.6 million of class D senior secured deferrable floating-rate notes at Libor plus 725 bps and $67 million of subordinated notes.
Proceeds were used to redeem the original notes.
The CLO is secured primarily by broadly syndicated senior secured corporate loans.
KKR has priced two new CLOs and refinanced one vintage CLO year to date.
The investment firm is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuer: | KKR CLO 16 Ltd./KKR CLO 16 LLC
|
| Amount: | $644.3 million refinancing
|
| Maturity: | Jan. 22, 2029
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | One year
|
| Pricing date: | May 10
|
| Settlement date: | June 5
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1-R notes
|
| Amount: | $456 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Price: | Par
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2-R notes
|
| Amount: | $76 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Price: | Par
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-1-R notes
|
| Amount: | $36.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Price: | Par
|
| Rating: | Moody’s: A2
|
|
|
| Class C-R notes
|
| Amount: | $47.1 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Price: | Par
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D-R notes
|
| Amount: | $29.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 675 bps
|
| Price: | Par
|
| Rating: | Moody’s: Ba3
|
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