KKR Financial Advisors II to refinance $410 million notes from vintage 2015 KKR CLO 13

By Cristal Cody

Tupelo, Miss., Feb. 15 – KKR Financial Advisors II, LLC plans to price $410 million of notes in a refinancing and reset of the vintage KKR Financial CLO 13 Ltd./KKR Financial CLO 13 LLC broadly syndicated transaction, according to a market source.

The deal includes $256 million of class A-1-R floating-rate notes (//AAA); $47 million of class B-1-R floating-rate notes; $20 million of class C-R floating-rate notes; $24 million of class D-R floating-rate notes; $21 million of class E-R floating-rate notes; $7 million of class F-R floating-rate notes and the original $35 million of subordinated notes.

Morgan Stanley & Co. LLC is the refinancing placement agent.

KKR Financial Advisors II will continue to manage the CLO.

The reset CLO will have a one-year non-call period and a two-year reinvestment period.

KKR Financial CLO 13 originally was issued Dec. 16, 2015 as a $412 million CLO of notes due Jan. 16, 2028.

The CLO had priced $2 million class X notes at Libor plus 100 basis points, $206 million of class A-1A senior secured floating-rate notes at Libor plus 152 bps, $50 million of class A-1L senior secured floating-rate loans at Libor plus 147 bps and up to $50 million of class A-1B senior secured floating-rate notes at Libor plus 147 bps.

The CLO also had priced $27 million of class B-1 senior secured floating-rate notes at Libor plus 220 bps; $20 million of 4% class B-2 senior secured fixed-rate notes; $20 million of class C senior secured deferrable floating-rate notes at Libor plus 305 bps; $24 million of class D senior secured deferrable floating-rate notes at Libor plus 395 bps; $21 million of class E senior secured deferrable floating-rate notes at Libor plus 625 bps; $7 million class F senior secured deferrable floating-rate notes at Libor plus 815 bps and $35 million of subordinated notes.

The refinanced CLO is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.

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

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