By Cristal Cody
Tupelo, Miss., May 7 – KKR Financial Advisors II, LLC sold $564.5 million of notes due April 15, 2027 in the KKR CLO 11 Ltd./KKR CLO 11 LLC collateralized loan obligation deal expected to close on Thursday, a source said.
The CLO priced $352 million of class A senior secured floating-rate notes at Libor plus 152 basis points; $68 million of class B senior secured floating-rate notes at Libor plus 215 bps; $25.5 million of class C senior secured deferrable floating-rate notes at Libor plus 310 bps; $35.25 million of class D senior secured deferrable floating-rate notes at Libor plus 405 bps; $27 million of class E senior secured deferrable floating-rate notes at Libor plus 520 bps and $56.75 million of subordinated notes.
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.
| Issuer: | KKR CLO 11 Ltd/KKR CLO 11 LLC
|
| Amount: | $564.5 million
|
| Maturity: | April 15, 2027
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Pricing date: | April 10
|
| Settlement date: | May 7
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $352 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 152 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $68 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 215 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $25.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 310 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $35.25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 405 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $27 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 520 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $56.75 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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