KKR prepares to refinance €310.75 million Avoca CLO X; securitized trading volume down

By Cristal Cody

Eureka Springs, Ark., Dec. 2 – KKR Credit Advisors (Ireland) Unlimited Co. expects to refinance €310.75 million of notes in a 2013 euro-denominated CLO deal.

About five euro-denominated CLOs have been refinanced year to date, according to market sources.

U.S. CLO managers have refinanced more than $22 billion of older transactions in 2016.

High-grade trading volume fell to $126.61 million in the securitized secondary market on Thursday, compared to $296.29 million on Wednesday, according to Trace.

Non-investment-grade CBO/CDO/CLO issues totaling $158.7 million were traded on Thursday, down from $232.88 million in the previous session.

KKR Credit Advisors (Ireland) plans to price €310.75 million of notes in a Rule 144A- and Regulation S-eligible refinancing of the 2013 vintage Avoca CLO XV Ltd. deal, according to a preliminary prospectus.

The renamed Avoca CLO X DAC deal includes €185 million of class A-R senior secured floating-rate notes (Aaa//AAA); €36 million of class B-R senior secured floating-rate notes (Aa2//AA); €14.5 million of class C-R senior secured deferrable floating-rate notes (A2//A); €14.5 million of class D-R senior secured deferrable floating-rate notes (Baa2//BBB); €18.5 million of class E-R senior secured deferrable floating-rate notes (Ba2//BB); €8 million of class F-R senior secured deferrable floating-rate notes (B2//B-) and €43.5 million of subordinated notes.

The notes will be refinanced on Dec. 20.

Credit Suisse Securities (Europe) Ltd. is the deal arranger.

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