KKR brings $610 million notes in new CLO; On Deck prices $237 million securitization

By Cristal Cody

Tupelo, Miss., April 11 – KKR Financial Advisors II, LLC closed Wednesday on a new $610 million CLO transaction in the broadly syndicated market.

Meanwhile, On Deck Capital, Inc. announced the firm priced a $237 million private securitization deal.

The DBRS rating for On Deck’s class A tranche is “the highest rating ever for a class of notes in an asset-backed securitization of small business loans in the online lending industry,” On Deck Capital said in a press release.

The deal is On Deck Capital’s third securitization transaction, Ron Elimelekh, head of capital markets at On Deck, said in the release.

The “issuance reflects On Deck’s most successful securitization issuance to date, with strong investor interest resulting in broad participation by existing and new institutional investors, expected improvement in credit ratings, and a significant reduction in cost of funds,” Elimelekh said.

In its deal, KKR Financial Advisors II sold $610 million of notes due April 15, 2031 in the KKR CLO 21 Ltd./KKR CLO 21 LLC transaction, according to a market source.

The CLO priced $390 million of class A senior secured floating-rate notes at Libor plus 100 basis points in the senior tranche.

Meanwhile, On Deck Capital priced a $237 million Rule 144A and Regulation S private offering of four-year fixed-rate asset-backed notes in four tranches, according to a market source and a press release.

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