Crescent Capital sells $403.1 million CLO; KKR refinances; high-grade secondary active

By Cristal Cody

Tupelo, Miss., June 13 – In new broadly syndicated CLO issuance, Crescent Capital Group LP sold $403.1 million of notes in an offering expected to close in June.

In other deal action, KKR Financial Advisors II, LLC priced $644.3 million of notes at par in a refinancing of a 2016 CLO transaction.

Year to date, nearly $50 billion of new broadly syndicated CLOs and more than $17 billion of vintage CLOs have been refinanced, according to market sources.

Meanwhile, secondary market volume in high-grade CBO/CDO/CLO notes was strong on Wednesday with $408.58 million of trading volume, according to Trace data. Lower-rated securities saw $111.38 million of trades in the previous session.

The high-grade securities had an average trading price of 98.70, while the non-high-grade CBO/CDO/CLO issues traded with an 87.70 average price on Wednesday.

Crescent Capital prices

Crescent Capital Group sold $403.1 million of notes in the new issue Atlas Senior Loan Fund XIV, Ltd./Atlas Senior Loan Fund XIV, LLC transaction, according to a market source.

At the top of the capital stack, the CLO priced $256 million of class A floating-rate notes at Libor plus 143 basis points.

Barclays was the placement agent.

The transaction is collateralized primarily by broadly syndicated senior secured corporate loans.

Crescent Capital has priced two new CLOs year to date.

The alternative asset management firm is based in Los Angeles.

KKR reprices $644.3 million

KKR Financial Advisors II priced $644.3 million of notes due Jan. 22, 2029 at par in a refinancing of the KKR CLO 16 Ltd./KKR CLO 16 LLC transaction, according to a market source.

The CLO sold $456 million of the class A-1-R senior secured floating-rate notes at Libor plus 125 bps.

Citigroup Global Markets Inc. was the placement agent.

The original $711.3 million transaction was issued Dec. 15, 2016. In that offering, the CLO sold $455 million of the class A-1 senior secured floating-rate notes at Libor plus 149 bps.

Proceeds were used to redeem the original notes.

The CLO is secured primarily by broadly syndicated senior secured corporate loans.

KKR has priced two new CLOs and refinanced one vintage CLO year to date.

The investment firm is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.

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