Chicago, Feb. 8 – KKR Financial Advisors II LLC sold $406.3 million in six classes of notes in the new KKR CLO 29 Ltd./KKR CLO 29 LLC collateralized loan obligation transaction, according to a market source.
The transaction includes $248 million of class A floating-rate notes at Libor plus 120 basis points, $56 million of class B floating-rate notes at Libor plus 150 bps, $24 million of class C deferrable floating-rate notes at Libor plus 200 bps, $22 million of class D deferrable floating-rate notes at Libor plus 340 bps, $15 million of class E deferrable floating-rate notes at Libor plus 675 bps, $4 million of class F deferrable floating-rate notes at Libor plus 900 bps and $37.3 million of subordinated notes.
BNP Paribas Securities Corp. is the arranger.
KKR Financial will manage the transaction during its three-year reinvestment period, which ends Jan. 15, 2024.
The notes are not callable until Jan. 15, 2022.
The CLO will be collateralized primarily by senior secured loans, cash and eligible investments with the great majority of borrowers based in the United States or Canada.
This is KKR’s first CLO in 2021.
KKR Financial is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuers: | KKR CLO 29 Ltd./KKR CLO 29 LLC
|
| Amount: | $406.3 million
|
| Maturity: | Jan. 15, 2032
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | KKR Financial Advisors II LLC
|
| Call: | One year
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 25
|
|
|
| Class A notes
|
| Amount: | $248 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 120 bps
|
| Rating: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B notes
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| Amount: | $56 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 150 bps
|
| Rating: | S&P: AA
|
|
|
| Class C notes
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| Amount: | $24 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: A
|
|
|
| Class D notes
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| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 340 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $15 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 675 bps
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| Rating: | S&P: BB-
|
|
|
| Class F notes
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| Amount: | $4 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 900 bps
|
| Rating: | S&P: B-
|
|
|
| Subordinated notes
|
| Amount: | $37.3 million
|
| Securities: | Subordinated notes
|
|
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