U.S. CLO volume tops $19 billion year to date; KKR prices firm’s first CLO deal of year

By Cristal Cody

Eureka Springs, Ark., June 2 – U.S. CLO volume rose to more than $19 billion year to date following a new transaction from KKR Financial Advisors II, LLC.

KKR Financial Advisors priced a $508.2 million CLO deal, its first offering of the year, following two transactions in 2015.

CLO managers have priced 47 U.S. dollar-denominated deals year to date, according to Prospect News data.

Global CLO volume totals more than $25 billion year to date.

KKR prices $508.2 million

KKR Financial Advisors II sold $508.2 million of notes due July 15, 2028 in the KKR CLO 14 Ltd./KKR CLO 14 LLC CLO 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 at the top of the capital structure.

Natixis Securities Americas LLC arranged the offering.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.