By Cristal Cody
Eureka Springs, Ark., Dec. 23 – Kramer Van Kirk Credit Strategies LP sold $355.5 million of notes due Jan. 15, 2029 in the firm’s first collateralized loan obligation deal of 2016, a market source said.
KVK CLO 2016-1 Ltd. priced $218.75 million of class A floating-rate notes at Libor plus 154 basis points; $45.5 million of class B floating-rate notes at Libor plus 225 bps; $22.75 million of class C floating-rate notes at Libor plus 315 bps; $17.5 million of class D floating-rate notes at Libor plus 440 bps; $17.5 million of class E floating-rate notes at Libor plus 790 bps and $33.5 million of subordinated notes.
Goldman Sachs & Co. arranged the deal.
Kramer Van Kirk Credit Strategies will manage the CLO.
The transaction has a two-year non-call period and a four-year reinvestment period.
Proceeds will be used to purchase a portfolio of about $350 million of first-lien senior secured leveraged loans.
The Chicago-based credit asset management firm priced one CLO deal in 2015.
| Issuer: | KVK CLO 2016-1 Ltd.
|
| Amount: | $355.5 million
|
| Maturity: | Jan. 15, 2029
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Goldman Sachs & Co.
|
| Manager: | Kramer Van Kirk Credit Strategies LP
|
| Call feature: | Two years
|
| Pricing date: | Dec. 13
|
|
|
| Class A notes
|
| Amount: | $218.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 154 bps
|
| Ratings: | Moody’s: Aaa expected
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $45.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 225 bps
|
| Rating: | Moody’s: Aa2 expected
|
|
|
| Class C notes
|
| Amount: | $22.75 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 315 bps
|
| Rating: | Moody’s: A2 expected
|
|
|
| Class D notes
|
| Amount: | $17.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 440 bps
|
| Rating: | Moody’s: Baa3 expected
|
|
|
| Class E notes
|
| Amount: | $17.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 790 bps
|
| Rating: | Moody’s: Ba3 expected
|
|
|
| Equity
|
| Amount: | $33.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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