KKR brings $564.5 million; MJX refinances $520 million CLO; KCAP’s CLO profit climbs

By Cristal Cody

Tupelo, Miss., May 7 – KKR Financial Advisors II, LLC brought a $564.5 million CLO deal expected to close on Thursday, while the refinancing space remains active, market sources said.

MJX Asset Management LLC refinanced $520 million of notes in a vintage 2012 CLO deal.

In other market activity, KCAP Financial, Inc. reported late Wednesday that first-quarter investment income from investments in CLO fund securities jumped 45% to $4.6 million from the same period a year ago.

KCAP’s portfolio company, Trimaran Advisors, LLC, priced the $464 million Catamaran CLO 2015-1 Ltd./Catamaran CLO 2015-1 LLC deal that closed on Tuesday. Trimaran has priced five CLOs since KCAP acquired the firm in 2012.

KKR Financial Advisors II sold $564.5 million of notes due April 15, 2027 in the KKR CLO 11 Ltd./KKR CLO 11 LLC deal, a source said.

The CLO priced $352 million of class A senior secured floating-rate notes at Libor plus 152 basis points at the top of the capital structure.

Credit Suisse Securities (USA) LLC was the placement agent.

KKR Financial Advisors II will manage the CLO.

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

Proceeds from the offering will be used to purchase a portfolio of about $550 million of leveraged loans.

KKR Financial Advisors brought two U.S. CLO transactions in 2014.

The firm is a subsidiary of KKR Asset Management, LLC.

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