By Cristal Cody
Eureka Springs, Ark., Aug. 12 – KKR Financial Advisors II, LLC priced $410.75 million of notes due Oct. 18, 2028 in the KKR CLO 15 Ltd./KKR CLO 15 LLC deal, according to a market source on Friday.
KKR CLO 15 sold $2.5 million of class X senior secured floating-rate notes at Libor plus 125 basis points, $206 million of class A-1A senior secured floating-rate notes at Libor plus 156 bps and $50 million of class A-1L loans at Libor plus 151 bps.
The CLO also priced $48 million of class B senior secured floating-rate notes at Libor plus 180 bps; $24 million of class C senior secured deferrable floating-rate notes at Libor plus 270 bps; $20 million of class D senior secured deferrable floating-rate notes at Libor plus 400 bps; $20 million of class E senior secured deferrable floating-rate notes at Libor plus 645 bps and $40.25 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
The CLO has a two-year non-call period and a four-year reinvestment period.
The deal is collateralized primarily by broadly syndicated first-lien senior secured loans.
Proceeds will be used to purchase a portfolio of $400 million of mostly first-lien senior secured loans.
KKR has priced two new U.S. CLOs and refinanced one vintage U.S. CLO transaction year to date.
The investment firm, an affiliate of Kohlberg Kravis Roberts & Co. LP, brought three new U.S. CLO transactions to market in 2015.
| Issuer: | KKR CLO 15 Ltd./KKR CLO 15 LLC
|
| Amount: | $410.75 million
|
| Maturity: | Oct. 18, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
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| Placement agent: Credit Suisse Securities (USA) LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Settlement date: | Sept. 14
|
| Call feature: | Two years
|
| Distribution: | Rule 144A
|
|
|
| Class X notes
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| Amount: | $2.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 125 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-1A notes
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| Amount: | $206 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 156 bps
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| Ratings: | Moody’s: Aaa
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| Fitch: AAA
|
|
|
| Class A-1L loans
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| Amount: | $206 million
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| Securities: | Loans
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| Coupon: | Libor plus 151 bps
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| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
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| Amount: | $48 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 180 bps
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| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $24 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 270 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $20 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 400 bps
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| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 645 bps
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| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $40.25 million
|
| Securities: | Subordinated notes
|
| Rating: | Non-rated
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