KKR refinances $235 million; Park Avenue Institutional Advisers, ICG in deal pipeline

By Cristal Cody

Eureka Springs, Ark., July 20 – KKR Financial Advisors II, LLC is the most recent CLO manager to refinance a vintage CLO with lower coupons, according to market sources on Wednesday.

The company refinanced a tranche set to step up to Libor plus 200 basis points this month.

CLO managers have refinanced a total of $1.72 billion from eight deals year to date, according to Deutsche Bank Securities Inc. analyst Bjarni Torfason.

The average coupon reduction has ranged from about 9 bps to as high as 31 bps, Torfason said in a note on Wednesday.

In other new issuance, Prudential Investment Management, Inc. sold $608 million in the Dryden 43 Senior Loan Fund/Dryden 43 Senior Loan Fund LLC transaction. Deutsche Bank Securities Inc. was the deal arranger. Final pricing details were not available by press time.

Looking ahead, Guardian Life Insurance Co. of America subsidiary Park Avenue Institutional Advisers LLC is offering a $380.95 million debut CLO.

ICG Debt Advisors LLC also is in the deal pipeline with a $405.75 million CLO.

KKR refinances

KKR Financial Advisors II refinanced $235 million of notes due Jan. 23, 2026 in the KKR Financial CLO 2013-2 Ltd. deal, according to market sources.

KKR Financial CLO 2013-2 refinanced the $115 million step-up tranche of class A-1C senior secured floating-rate notes at Libor plus 145 bps.

The original notes (Aaa//AAA) priced at Libor plus 110 bps and stepped up to Libor plus 175 bps in July 2015 and were scheduled to step up to Libor plus 200 bps in July 2016.

Mizuho Securities USA Inc. was the refinancing agent.

KKR originally sold $384 million of notes in the deal that closed in January 2014. The remaining tranches were not refinanced.

The CLO had a non-call period that ended in January 2016. The reinvestment period ends in January 2018.

The deal is collateralized by broadly syndicated first-lien senior secured loans and eligible investments.

KKR has priced one new U.S. CLO and refinanced one vintage U.S. CLO year to date.

The investment firm, an affiliate of Kohlberg Kravis Roberts & Co. LP, placed three new U.S. CLO transactions in 2015.

Park Avenue preps CLO

Guardian Life Insurance Co. of America subsidiary Park Avenue Institutional Advisers is offering $380.95 million of notes due Aug. 23, 2028 in a debut broadly syndicated CLO deal, according to a market source.

The Park Avenue Institutional Advisers CLO Ltd. 2016-1/Park Avenue Institutional Advisers CLO LLC 2016-1 offering includes $234.9 million of class A-1 floating-rate notes (/AAA/); $39.6 million of class A-2 floating-rate notes (/AA/); $32.3 million of class B deferrable floating-rate notes (/A/); $21.7 million of class C deferrable floating-rate notes (/BBB-/); $11.8 million of class D deferrable floating-rate notes (/BB-/) and $40.65 million of subordinated notes.

J.P. Morgan Securities LLC is the placement agent.

The CLO is non-callable until Aug. 23, 2018. The reinvestment period ends Aug. 23, 2020.

The deal is expected to close on Aug. 23.

Park Avenue Institutional Advisers is a New York-based investment management firm.

ICG offers $405.75 million

ICG Debt Advisors plans to price $405.75 million of notes due 2028 in the ICG US CLO 2016-1, Ltd./ICG US CLO 2016-1 LLC transaction, according to a market source.

The offering includes $256 million of class A-1 floating-rate notes (//AAA); $51 million of class A-2 floating-rate notes; $18 million of class B floating-rate notes; $26 million of class C floating-rate notes; $17 million of class D floating-rate notes and $37.75 million of subordinated notes.

Citigroup Global Markets Inc. is the placement agent.

ICG Debt Advisors will manage the CLO.

The CLO has a two-year non-call period and a four-year reinvestment period.

The deal is backed primarily by a portfolio of broadly syndicated first-lien senior secured corporate loans.

Proceeds from the offering will be used to purchase assets to reach a target portfolio of about $400 million of mostly senior secured loans.

ICG Debt Advisors priced two U.S. CLO deals in 2015.

The New York-based firm is a U.S. subsidiary of London-based parent company Intermediate Capital Group plc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.