Chicago, May 11 – KKR Financial Advisors II, LLC sold $502.7 million in a collateralized loan obligation being issued by KKR CLO 40 Ltd., according to multiple notices.
The notes will mature on Oct. 20, 2034.
The CLO consists of $320 million of class A senior secured floating-rate notes at SOFR plus 157 basis points, $60 million of class B senior secured floating-rate notes at SOFR plus 210 bps, $30 million of class C senior secured deferrable floating-rate notes at SOFR plus 260 bps, $30 million of class D senior secured deferrable floating-rate notes at SOFR plus 390 bps, $20 million of class E senior secured deferrable floating-rate notes at SOFR plus 796 bps and $42.7 million of subordinated notes.
KKR Financial Advisors II, LLC will manage the collateral through the end of the 3.9-year reinvestment period.
Collateral for the notes consists of first-lien senior secured leveraged loans.
BofA Securities, Inc. was the placement agent.
KKR Financial is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuer: | KKR CLO 40 Ltd.
|
| Issue: | Floating-rate notes and subordinated notes
|
| Amount: | $502.7 million
|
| Maturity: | Oct. 20, 2034
|
| Structure: | Cash flow CLO
|
| Placement agent: | BofA Securities, Inc.
|
| Manager: | KKR Financial Advisors II, LLC
|
| Settlement date: | May 9
|
|
|
| Class A notes
|
| Amount: | $320 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 157 bps
|
| Rating: | Moody's: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $60 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | SOFR plus 210 bps
|
| Rating: | Fitch: AA
|
|
|
| Class C notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 260 bps
|
| Rating: | Fitch: A+
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 390 bps
|
| Rating: | Fitch: BBB
|
|
|
| Class E notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | SOFR plus 796 bps
|
| Rating: | Moody's: Ba3
|
|
|
| Subordinated notes
|
| Amount: | $42.7 million
|
| Securities: | Subordinated notes
|
|
|
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