By Cristal Cody
Tupelo, Miss., Dec. 17 – First Eagle Alternative Credit LLC sold $287 million of notes due Jan. 15, 2029 in a partial refinancing of a 2016 collateralized loan obligation deal, according to a notice of proposed supplemental indenture on Wednesday.
KVK CLO 2016-1 Ltd./KVK CLO 2016-1 LLC priced $218.75 million of class A-R senior secured floating-rate notes at Libor plus 107 basis points, $45.5 million of class B-R senior secured floating-rate notes at Libor plus 200 bps and $22.75 million of class C-R senior secured deferrable floating-rate notes at Libor plus 275 bps.
In the original $355.5 million offering issued Dec. 23, 2016, the CLO priced $218.75 million of class A floating-rate notes at Libor plus 154 bps; $45.5 million of class B floating-rate notes at Libor plus 225 bps; $22.75 million of class C floating-rate notes at Libor plus 315 bps; $17.5 million of class D floating-rate notes at Libor plus 440 bps; $17.5 million of class E floating-rate notes at Libor plus 790 bps and $33.5 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the refinancing agent.
First Eagle Alternative Credit will manage the CLO.
PGIM Inc. is the designated successor manager.
The refinanced notes are non-callable to but excluding the payment date in July 2021.
Proceeds will be used to redeem the class A, B and C notes on Jan. 15.
Boston-based First Eagle is an alternative credit management firm.
| Issuer: | KVK CLO 2016-1 Ltd./KVK CLO 2016-1 LLC
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| Amount: | $287 million refinancing
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| Maturity: | Jan. 15, 2029
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| Securities: | Floating-rate notes
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| Structure: | Cash flow CLO
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| Refinancing agent: | Credit Suisse Securities (USA) LLC
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| Manager: | First Eagle Alternative Credit LLC
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| Call feature: | Non-callable to but excluding payment date in July 2021
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| Announcement date: | Dec. 16
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| Settlement date: | Jan. 15
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| Distribution: | Rule 144A and Regulation S
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|
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| Class A-R notes
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| Amount: | $218.75 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 107 bps
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| Ratings: | Moody’s: Aaa expected
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| Fitch: AAA expected
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| Class B-R notes
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| Amount: | $45.5 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 200 bps
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| Ratings: | Moody’s: Aa2 expected
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|
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| Class C-R notes
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| Amount: | $22.75 million
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| Securities: | Senior secured deferrable floating-rate notes
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| Coupon: | Libor plus 275 bps
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| Ratings: | Moody’s: A3 expected
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