Chicago, Sept. 29 – KKR Financial Advisors II LLC refinanced for the second time for $720.3 million a collateralized loan obligation issued by KKR CLO 16 Ltd./KKR CLO 16 LLC, according to a pre-sale report.
The notes will now mature on Oct. 20, 2034.
The refinanced CLO consists of $7 million of class X senior secured floating-rate notes at Libor plus 75 basis points, $441 million of class A-1-R2 senior secured floating-rate notes at Libor plus 121 bps, $91 million of class A-2-R2 senior secured floating-rate notes at Libor plus 175 bps, $38.9 million of class B-R2 senior secured deferrable floating-rate notes at Libor plus 225 bps, $41.6 million of class C-R2 senior secured deferrable floating-rate notes at Libor plus 330 bps, $29.75 million of class D-R2 senior secured deferrable floating-rate notes at Libor plus 711 bps and $71.05 million of subordinated notes.
At the last refinancing, the CLO sold $456 million of class A-1-R senior secured floating-rate notes at Libor plus 125 bps, $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.
The original transaction had $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.
KKR Financial Advisors II LLC will manage the collateral through the end of the reinvestment period on Oct. 20, 2026.
The notes are backed by broadly syndicated speculative-grade senior secured term loans.
The notes can be called starting Oct. 5, 2023.
Citigroup Global Markets Inc. was the placement agent.
The investment firm is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuers: | KKR CLO 16 Ltd./KKR CLO 16 LLC
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $720.3 million
|
| Maturity: | Oct. 20, 2034
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | KKR Financial Advisors II LLC
|
| Call feature: | Oct. 5, 2023
|
| Settlement date: | Oct. 5
|
|
|
| Class X notes
|
| Amount: | $7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 75 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-1-R2 notes
|
| Amount: | $441 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 121 bps
|
| Rating: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-2-R2 notes
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| Amount: | $91 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Rating: | S&P: AA
|
|
|
| Class B-R2 notes
|
| Amount: | $38.9 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | S&P: A
|
|
|
| Class C-R2 notes
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| Amount: | $41.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 330 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class D-R2 notes
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| Amount: | $29.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 711 bps
|
| Rating: | S&P: BB-
|
|
|
| Subordinated notes
|
| Amount: | $71.05 million
|
| Securities: | Subordinated notes
|
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