By Cristal Cody
Tupelo, Miss., June 25 – FS KKR Capital Corp. closed Tuesday on a new $507.5 million offering of notes due July 15, 2030 in the FS KKR MMC CLO 1 Ltd./FS KKR CLO 1 LLC transaction, according to market sources.
The middle-market CLO sold $299.4 million of class A-1 floating-rate notes at Libor plus 170 basis points, $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.
Citigroup Global Markets Inc. was the placement agent.
FS KKR Capital will manage the CLO.
The CLO has a one-year non-call period and a two-year reinvestment period.
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 MMC CLO 1 Ltd./FS KKR CLO 1 LLC
|
| Amount: | $507.5 million
|
| Securities: | Floating-rate and subordinated notes
|
| Maturity: | July 15, 2030
|
| Structure: | Middle-market CLO
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Manager: | FS KKR Capital Corp.
|
| Call feature: | One year
|
| Pricing date: | May 30
|
| Settlement date: | June 25
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A-1 notes
|
| Amount: | $299.4 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 170 bps
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $52.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Rating: | S&P: AA
|
|
|
| Class B notes
|
| Amount: | $27 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 410 bps
|
| Rating: | S&P: A
|
|
|
| Equity
|
| Amount: | $128.8 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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