By Cristal Cody
Tupelo, Miss., Dec. 18 – FS KKR Capital Corp. priced $512.5 million of notes in a refinancing and reset of the FS KKR MM CLO 1 Ltd./FS KKR MM CLO 1 LLC transaction, according to market sources.
The CLO sold $281.4 million of class A-1R floating-rate notes at Libor plus 185 basis points, $20.5 million of class A-2R floating-rate notes at Libor plus 225 bps, $32.42 million of class B-1R floating-rate notes at Libor plus 260 bps and $17.38 million of 3.011% class B-2R fixed-rate notes.
FS KKR also priced $32 million of class C-R deferrable floating-rate notes at Libor plus 310 bps and $128.8 million of subordinated notes.
In the original deal issued on June 25, 2019, the CLO priced $299.4 million of class A-1 floating-rate notes at Libor plus 170 bps, $52.3 million of class A-2 floating-rate notes at Libor plus 250 bps, $27 million of class B deferrable floating-rate notes at Libor plus 410 bps and $128.8 million of subordinated notes.
GreensLedge Capital Markets LLC and Barclays were the refinancing agents.
The maturity was extended to Jan. 15, 2031 from July 15, 2030.
The notes have an extended one-year non-call period and an extended two-year reinvestment period.
Proceeds will be used to redeem the outstanding notes.
The offering is collateralized primarily by middle-market senior secured term loans.
FS KKR Capital is a Philadelphia-based business development company that invests mainly in senior secured and subordinated debt of private middle-market U.S. companies.
| Issuer: | FS KKR MM CLO 1 Ltd./FS KKR MM CLO 1 LLC
|
| Amount: | $512.5 million refinancing
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| Securities: | Fixed-rate, floating-rate and subordinated notes
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| Maturity: | Jan. 15, 2031
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| Structure: | Middle-market CLO
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| Refinancing agents: | GreensLedge Capital Markets LLC and Barclays
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| Manager: | FS KKR Capital Corp.
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| Call feature: | One year
|
| Settlement date: | Dec. 22
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1R notes
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| Amount: | $281.4 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 185 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class A-2R notes
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| Amount: | $20.5 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 225 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class B-1R notes
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| Amount: | $32.42 million
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| Securities: | Floating-rate notes
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| Coupon: | Libor plus 260 bps
|
| Ratings: | S&P: AA
|
|
|
| Class B-2R notes
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| Amount: | $17.38 million
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| Securities: | Fixed-rate notes
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| Coupon: | 3.011%
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| Ratings: | S&P: AAA
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|
|
| Class C-R notes
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| Amount: | $32 million
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| Securities: | Deferrable floating-rate notes
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| Coupon: | Libor plus 310 bps
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| Ratings: | S&P: AA
|
|
|
| Equity
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| Amount: | $128.8 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
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