By Cristal Cody
Eureka Springs, Ark., July 20 – KKR Financial Advisors II, LLC refinanced $235 million of notes due Jan. 23, 2026 in the KKR Financial CLO 2013-2 Ltd. deal, according to market sources.
KKR Financial CLO 2013-2 refinanced the $115 million step-up tranche of class A-1C senior secured floating-rate notes at Libor plus 145 basis points.
The original notes (Aaa//AAA) priced at Libor plus 110 bps and stepped up to Libor plus 175 bps in July 2015 and were scheduled to step up to Libor plus 200 bps in July 2016.
The CLO also refinanced $100 million of class A-1A senior secured floating-rate notes (Aaa//AAA), $10 million of 3.3599% class A-1B senior secured fixed-rate notes (Aaa/AAA) and $10 million of 4.1295% class A-2B senior secured fixed-rate notes (Aa2). Final refinancing details for the other tranches was not available.
Mizuho Securities USA Inc. was the refinancing agent.
KKR originally sold $384 million of notes in the deal that closed in January 2014. The remaining tranches were not refinanced.
The CLO had a non-call period that ended in January 2016. The reinvestment period ends in January 2018.
The deal is collateralized by broadly syndicated first-lien senior secured loans and eligible investments.
KKR has priced one new U.S. CLO and refinanced one vintage U.S. CLO year to date.
The investment firm, an affiliate of Kohlberg Kravis Roberts & Co. LP, placed three new U.S. CLO transactions in 2015.
| Issuer: | KKR Financial CLO 2013-2 Ltd.
|
| Amount: | $235 million refinancing
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| Maturity: | Jan. 23, 2026
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| Securities: | Fixed-rate and floating-rate notes
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| Structure: | Cash flow CLO
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| Refinancing agent: | Mizuho Securities USA Inc.
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| Manager: | KKR Financial Advisors II, LLC
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| Pricing date: | July 15
|
|
|
| Class A-1C-R notes
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| Amount: | $115 million
|
| Coupon: | Libor plus 145 bps
|
|
|
| Class A-1A-R notes
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| Amount: | $100 million
|
|
|
| Class A-1B-R notes
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| Amount: | $10 million
|
|
|
| Class 2-B-R notes
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| Amount: | $10 million
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