By Cristal Cody
Tupelo, Miss., Aug. 18 – KKR Financial Advisors II, LLC priced $518 million of notes due Sept. 15, 2026 in the KKR CLO 9 Ltd./KKR CLO 9 LLC transaction, according to an informed source.
The CLO sold $306.25 million of class A senior secured floating-rate notes (Aaa//AAA) at Libor plus 147 basis points.
The CLO also priced $67.75 million of class B senior secured floating-rate notes (Aa2) at Libor plus 200 bps; $23.5 million of class C senior secured deferrable floating-rate notes (A2) at Libor plus 300 bps; $32.5 million of class D senior secured deferrable floating-rate notes (Baa3) at Libor plus 350 bps and $33.75 million of class E senior secured deferrable floating-rate notes (Ba3) at Libor plus 480 bps.
The deal included a $54.25 million equity tranche of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
KKR Financial Advisors II will manage the CLO, which is backed by first-lien senior secured loans.
The CLO has a two-year non-call period and a four-year reinvestment period.
Proceeds from the deal will be used to purchase a portfolio of about $500 million of leveraged loans.
KKR Financial Advisors, a subsidiary of KKR Asset Management, LLC, priced two CLO deals in 2013.
| Issuer: | KKR CLO 9 Ltd./KKR CLO 9 LLC
|
| Amount: | $518 million
|
| Maturity: | Sept. 15, 2026
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | 2016
|
| Pricing date: | Aug. 7
|
| Settlement date: | Sept. 15
|
| Distribution: | Rule 144A
|
|
|
| Class A notes
|
| Amount: | $306.25 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 147 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class B notes
|
| Amount: | $67.75 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 200 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $23.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 300 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $32.5 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 350 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $33.75 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 480 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity tranche
|
| Amount: | $54.25 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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