By Cristal Cody
Tupelo, Miss., Dec. 4 – KKR Financial Advisors II, LLC priced $415.6 million of notes due Dec. 15, 2025 in the KKR CLO 10 Ltd./KKR CLO 10 LLC transaction, according to a market source.
The CLO sold $247 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 160 basis points; $32 million of class B-1 senior secured floating-rate notes (/AA/) at Libor plus 220 bps; $20 million of 4.686% class B-2 senior secured fixed-rate notes (/AA/); $25 million of class C-1 senior secured deferrable floating-rate notes (/A/) at Libor plus 320 bps; $5 million of 5.606% class C-2 senior secured deferrable fixed-rate notes (/A/); $20 million of class D senior secured deferrable floating-rate notes (/BBB/) at Libor plus 375 bps; $19 million of class E senior secured deferrable floating-rate notes (/BB/) at Libor plus 500 bps and $47.6 million of subordinated notes.
BNP Paribas Securities Corp. was the placement agent.
KKR Financial Advisors II will manage the CLO, which is backed primarily by broadly syndicated senior secured loans.
The CLO is non-callable until Dec. 15, 2016. The reinvestment period ends Dec. 15, 2018.
KKR Financial Advisors was previously in the primary market on Aug. 7 with the $518 million KKR CLO 9 Ltd./KKR CLO 9 LLC transaction.
The firm is a subsidiary of KKR Asset Management, LLC.
| Issuer: | KKR CLO 10 Ltd./KKR CLO 10 LLC
|
| Amount: | $415.6 million
|
| Maturity: | Dec. 15, 2025
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | BNP Paribas Securities Corp.
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | Dec. 15, 2016
|
| Pricing date: | Nov. 25
|
| Settlement date: | Dec. 15
|
|
|
| Class A notes
|
| Amount: | $247 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 160 bps
|
| Ratings: | Moody’s: Aaa
|
| Standard & Poor’s: AAA
|
|
|
| Class B-1 notes
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| Amount: | $32 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 220 bps
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class B-2 notes
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| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.686%
|
| Rating: | Standard & Poor’s: AA
|
|
|
| Class C-1 notes
|
| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 320 bps
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class C-2 notes
|
| Amount: | $5 million
|
| Securities: | Senior secured deferrable fixed-rate notes
|
| Coupon: | 5.606%
|
| Rating: | Standard & Poor’s: A
|
|
|
| Class D notes
|
| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 375 bps
|
| Rating: | Standard & Poor’s: BBB
|
|
|
| Class E notes
|
| Amount: | $19 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Rating: | Standard & Poor’s: BB
|
|
|
| Equity tranche
|
| Amount: | $47.6 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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