By Cristal Cody
Tupelo, Miss., Dec. 7 – Kramer Van Kirk Credit Strategies LP priced $495.61 million of notes in a refinancing and reset of the KVK CLO 2013-1 Ltd./KVK CLO 2013-1 LLC transaction, according to a market source and a notice of revised proposed second supplemental indenture on Wednesday.
The CLO sold $3 million of class X senior secured floating-rate notes at Libor plus 65 basis points; $295 million of class A-R senior secured floating-rate notes at Libor plus 90 bps; $50.7 million of class B-R senior secured floating-rate notes at Libor plus 145 bps; $29.7 million of class C-R senior secured deferrable floating-rate notes at Libor plus 200 bps; $26.8 million of class D-R senior secured deferrable floating-rate notes at Libor plus 195 bps and $17.5 million of class E-R senior secured deferrable floating-rate notes at Libor plus 594 bps.
The deal also includes $72.91 million of subordinated notes, which includes $63.45 million of the original subordinated notes, $3.34 million of new subordinated notes and $6.12 million of class B subordinated notes.
Goldman Sachs & Co. was the refinancing agent.
The maturity on the refinanced notes was extended to Jan. 14, 2028 from the original April 14, 2025 maturity.
The reset CLO has a one-year non-call period and a two-year reinvestment period.
In the original $570.01 million transaction issued Feb. 27, 2013, the CLO sold $346.5 million of class A floating-rate notes at Libor plus 140 bps; $61.5 million of class B floating-rate notes at Libor plus 235 bps; $42.35 million of class C deferrable floating-rate notes at Libor plus 300 bps; $29.43 million of class D deferrable floating-rate notes at Libor plus 435 bps; $27.23 million of class E deferrable notes at Libor plus 550 bps; and $63.45 million of subordinated notes.
Proceeds will be used to redeem the original notes.
Kramer Van Kirk Credit Strategies has refinanced five vintage CLOs year to date.
The Chicago-based CLO manager priced one new CLO deal in 2016.
| Issuer: | KVK CLO 2013-1 Ltd./KVK CLO 2013-1 LLC
|
| Amount: | $495.61 million refinancing
|
| Maturity: | Jan. 14, 2028
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Refinancing agent: | Goldman Sachs & Co.
|
| Manager: | Kramer Van Kirk Credit Strategies LP
|
| Settlement date: | Dec. 13
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class X notes
|
| Amount: | $3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 65 bps
|
| Rating: | S&P: AAA
|
|
|
| Class A-R notes
|
| Amount: | $295 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 90 bps
|
| Rating: | S&P: AAA
|
|
|
| Class B-R notes
|
| Amount: | $50.7 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Rating: | S&P: AA
|
|
|
| Class C-R notes
|
| Amount: | $29.7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | S&P: A
|
|
|
| Class D-R notes
|
| Amount: | $26.8 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 295 bps
|
| Rating: | S&P: BBB-
|
|
|
| Class E-R notes
|
| Amount: | $17.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 594 bps
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $72.91 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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