By Cristal Cody
Eureka Springs, Ark., Dec. 15 – KKR Financial Advisors II, LLC closed on its $711.3 million of notes due Jan. 20, 2029 in the KKR CLO 16 Ltd./KKR CLO 16 LLC transaction on Thursday, according to a market source.
The CLO sold $455 million of class A-1 senior secured floating-rate notes at Libor plus 149 basis points; $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.
Citigroup Global Markets Inc. was the placement agent.
KKR Financial Advisors II will manage the CLO.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is collateralized primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of $500 million of mostly first-lien senior secured loans.
KKR has priced three new U.S. CLOs and refinanced one vintage U.S. CLO transaction year to date.
The investment firm, an affiliate of Kohlberg Kravis Roberts & Co. LP, placed three new CLO transactions in 2015.
| Issuer: | KKR CLO 16 Ltd./KKR CLO 16 LLC
|
| Amount: | $711.3 million
|
| Maturity: | Jan. 20, 2029
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | Two years
|
| Settlement date: | Dec. 15
|
| Distribution: | Rule 144A
|
|
|
| Class A-1 notes
|
| Amount: | $455 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 149 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
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| Amount: | $76 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-1 notes
|
| Amount: | $27.1 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 260 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class B-2 notes
|
| Amount: | $9.5 million
|
| Securities: | Senior secured deferrable fixed-rate notes
|
| Coupon: | 4.8%
|
| Rating: | Moody’s: A2
|
|
|
| Class C notes
|
| Amount: | $47.1 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class D notes
|
| Amount: | $29.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 725 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $67 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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