By Cristal Cody
Tupelo, Miss., March 11 - Kramer Van Kirk Credit Strategies LP priced an upsized $584.27 million of notes due April 15, 2026 in a collateralized loan obligation offering, according to an informed source on Tuesday.
KVK CLO 2014-1 Ltd./KVK CLO 2014-1 LLC priced $352 million of class A floating-rate notes (/AAA/) at Libor plus 159 basis points; $68.37 million of class B floating-rate notes (/AA/) at Libor plus 225 bps; $48.59 million of class C deferrable floating-rate notes (/A/) at Libor plus 290 bps; $31.08 million of class D deferrable floating-rate notes (/BBB/) at Libor plus 375 bps; $25.99 million of class E deferrable floating-rate notes (/BB/) at Libor plus 475 bps and $58.24 million of subordinated notes.
The offering was upsized from an initial deal size estimate of $413.2 million.
Goldman Sachs & Co. arranged the transaction.
Kramer Van Kirk Credit Strategies will manage the CLO, which is backed primarily by a revolving pool of broadly syndicated senior secured corporate loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Kramer Van Kirk Credit Strategies, a Chicago-based credit asset management firm, was in the primary market in 2013 with the $570.01 million KVK CLO 2013-1 Ltd./KVK CLO 2013-1 LLC deal and the $415 million KVK CLO 2013-2 Ltd./KVK CLO 2013-2 LLC offering.
| Issuer: | KVK CLO 2014-1 Ltd./KVK CLO 2014-1 LLC
|
| Amount: | $584.27 million
|
| Maturity: | April 15, 2026
|
| Securities: | Floating-rate notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Kramer Van Kirk Credit Strategies LP
|
| Call feature: | 2016
|
| Pricing date: | March 5
|
|
|
| Class A
|
| Amount: | $352 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 159 bps
|
| Rating: | Standard & Poor's: AAA
|
|
|
| Class B
|
| Amount: | $68.37 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Standard & Poor's: AA
|
|
|
| Class C
|
| Amount: | $48.59 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 290 bps
|
| Rating: | Standard & Poor's: A
|
|
|
| Class D
|
| Amount: | $31.08 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Standard & Poor's: BBB
|
|
|
| Class E
|
| Amount: | $25.99 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 640 bps
|
| Rating: | Standard & Poor's: BB
|
|
|
| Equity tranche
|
| Amount: | $58.24 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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