By Cristal Cody
Eureka Springs, Ark., June 2 – KKR Financial Advisors II, LLC sold $508.2 million of notes due July 15, 2028 in the KKR CLO 14 Ltd./KKR CLO 14 LLC collateralized loan obligation deal, according to a market source.
The CLO priced $310 million class A-1A senior secured floating-rate notes at Libor plus 162 basis points, $10 million of 3.02% class A-1B senior secured fixed-rate notes and $56.3 million of class A-2 senior secured floating-rate notes at Libor plus 230 bps.
KKR CLO 14 also priced $30.5 million of class B senior secured floating-rate notes at Libor plus 321 bps; $28.4 million of class C senior secured floating-rate notes at Libor plus 435 bps; $22.5 million of class D senior secured floating-rate notes at Libor plus 700 bps and $50.5 million of subordinated notes.
Natixis Securities Americas LLC arranged the offering.
KKR Financial Advisors II will manage the CLO.
The deal has a 2.1-year non-call period and a 4.1-year reinvestment period.
The CLO is backed primarily by broadly syndicated first-lien senior secured loans.
The proceeds will be used to purchase a portfolio of about $500.2 million of mostly senior secured leveraged loans.
KKR Financial Advisors priced two U.S. CLO transactions in 2015 and two U.S. CLO deals in 2014.
The investment firm is an affiliate of Kohlberg Kravis Roberts & Co. LP.
| Issuer: | KKR CLO 14 Ltd./KKR CLO 14 LLC
|
| Amount: | $508.2 million
|
| Maturity: | July 15, 2028
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Natixis Securities Americas LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | 2018
|
| Pricing date: | May 31
|
| Settlement date: | June 27
|
| Distribution: | Rule 144A
|
|
|
| Class A-1A notes
|
| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 162 bps
|
| Rating: | Fitch: AAA
|
|
|
| Class A-1B notes
|
| Amount: | $10 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 3.02%
|
| Rating: | Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $56.3 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Ratings: | Non-rated
|
|
|
| Class B notes
|
| Amount: | $30.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 321 bps
|
| Ratings: | Non-rated
|
|
|
| Class C notes
|
| Amount: | $28.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 435 bps
|
| Ratings: | Non-rated
|
|
|
| Class D notes
|
| Amount: | $22.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $50.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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