KKR Real Estate Finance Trust enters two-year $75 million revolver

By Wendy Van Sickle

Columbus, Ohio, May 10 – KKR Real Estate Finance Trust Inc. indirect wholly owned subsidiary KKR Real Estate Finance Holdings LP entered a credit agreement providing for a two-year, up to $75 million secured revolving credit facility on May 4, according to an 8-K filing with the Securities and Exchange Commission.

The revolver was led by Barclays Bank plc as lead arranger, bookrunner and administrative agent.

Borrowings bear interest at Libor plus 400 basis points.

KKR may request additional commitments up to a total of $125 million.

The revolver has an initial maturity in May 2019 and two one-year extension options.

The company must comply with a maximum debt to equity ratio of 3.50 to 1.00; a minimum fixed charge coverage ratio of 1.50 to 1.00; a minimum borrowing base interest charge coverage ratio of 1.50 to 1.00 at any time there are loans outstanding under the revolver; and minimum tangible net worth and cash liquidity covenants.

Proceeds are expected to be used to purchase loans and other eligible assets under the borrowers’ investment guidelines and for operating expenses and general corporate purposes.

Availability of borrowings is based on a pool of eligible unencumbered commercial real estate assets.

New York-based KKR Real Estate Finance is a global investment firm that manages investments across asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds.

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