By Cristal Cody
Tupelo, Miss., April 4 – KKR Financial Advisors II, LLC priced $452 million of notes due April 15, 2032 in the KKR CLO 25 Ltd./KKR CLO 25 LLC transaction, according to a market source.
The CLO sold $278 million of class A-1 senior secured floating-rate notes (Aaa//AAA) at Libor plus 140 basis points, $13.4 million of class A-2 senior secured floating-rate notes (//AAA) at Libor plus 170 bps, $30.1 million of class B-1 senior secured floating-rate notes (Aa2) at Libor plus 200 bps and $15 million of 4.319% class B-2 senior secured fixed-rate notes (Aa2).
KKR CLO 25 also priced $23.6 million of class C senior secured deferrable floating-rate notes (A2) at Libor plus 275 bps, $27 million of class D senior secured deferrable floating-rate notes (Baa3) at Libor plus 385 bps, $21.2 million of class E senior secured deferrable floating-rate notes (Ba3) at Libor plus 654 bps and $42.8 million of subordinated notes.
The deal was upsized from an initial $406.3 million offering.
GreensLedge Capital Markets LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The offering is collateralized primarily by broadly syndicated first lien senior secured corporate loans.
KKR has priced two new CLOs year to date.
The investment firm is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuer: | KKR CLO 25 Ltd./KKR CLO 25 LLC
|
| Amount: | $452 million
|
| Maturity: | April 15, 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: GreensLedge Capital Markets LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | Two years
|
| Pricing date: | March 28
|
| Settlement date: | May 14
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $278.9 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 140 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $13.4 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | Moody’s: Non-rated
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $30.1 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class B-2 notes
|
| Amount: | $15 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.319%
|
| Ratings: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $23.6 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Ratings: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $27 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Ratings: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $21.2 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 654 bps
|
| Ratings: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $42.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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