KKR prices $1 billion commercial real estate CLO; GSO/Blackstone CLO offering on tap

By Cristal Cody

Tupelo, Miss., Nov. 8 – In new issuance, KKR Real Estate Finance Trust Inc. priced a $1 billion commercial real estate CLO on Wednesday.

The deal is the largest managed CRE CLO issued to date by a publicly traded mortgage REIT sponsor, according to a news release.

KKR Real Estate Finance Trust priced the $1 billion KREF 2018-FL1 Ltd. transaction on Wednesday, according to a market source and a news release.

The CLO sold $810 million of securities rated AAA through BBB- with a weighted average running cost of capital of Libor plus 136 basis points before amortized costs.

Wells Fargo Securities LLC, KKR Capital Markets LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC were the placement agents.

Elsewhere in the broadly syndicated CLO space, GSO/Blackstone Debt Funds Management LLC intends to price a new $716.25 million offering.

The Harbor Park CLO Ltd./Harbor Park CLO LLC deal includes $1.75 million of class X floating-rate notes (//AAA); $412,125,000 of class A-1 floating-rate notes (//AAA); $42,875,000 of class A-2 floating-rate notes (//AAA); $42 million of class B-1 floating-rate notes; $30.8 million of class B-2 floating-rate notes; $39.2 million of class C floating-rate notes; $43.75 million of class D floating-rate notes; $24.5 million of class E floating-rate notes and $79.25 million of subordinated notes.

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