By Rebecca Melvin
New York, Nov. 17 – KKR Financial Advisors II LLC sold $412 million of notes due January 2028 in the KKR CLO 13 Ltd./KKR CLO 13 LLC collateralized loan obligation deal, a market source said.
The CLO 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; up to $50 million of class A-1B senior secured floating-rate notes at Libor plus 147 bps; $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 a $35 million equity tranche of subordinated notes that was not rated.
The class A-1L loans can be converted to class A-1B notes after the closing date.
Morgan Stanley was the underwriter.
KKR Financial Advisors II LLC will manage the CLO.
The deal is backed primarily by broadly syndicated first-lien senior secured corporate loans and other assets.
The issue has a two-year non-call period that ends in January 2018 and a four-year reinvestment period until January 2020.
KKR Financial Advisors brought its KKR CLO 12 and KKR CLO 11 earlier this year and two U.S. CLO transactions in 2014.
The firm is a subsidiary of KKR Credit Advisors II LLC, which is part of global investment firm Kohlberg Kravis Roberts & Co. LP.
| Issuer: | KKR CLO 13 Ltd/KKR CLO 13 LLC
|
| Amount: | $412 million
|
| Maturity: | January 2028
|
| Securities: | Floating-rate and fixed rate subordinated notes and loans
|
| Structure: | Cash flow CLO
|
| Underwriter: | Morgan Stanley
|
| Manager: | KKR Financial Advisors II LLC
|
| Settlement date: | December 2015
|
|
|
| Class X notes
|
| Amount: | $2 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1A notes
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| Amount: | $206 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 152 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1L loans
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| Amount: | $50 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 147 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class A-1B notes
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| Amount: | Up to $50 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 147 bps
|
| Rating: | Moody’s: Aaa
|
|
|
| Class B-1 notes
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| Amount: | $27 million
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Libor plus 220 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-2 notes
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| Amount: | $20 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4%
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
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| Amount: | $20 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 305 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
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| Amount: | $24 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 395 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
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| Amount: | $21 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 625 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Class F notes
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| Amount: | $7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 815 bps
|
| Rating: | Moody’s: B3
|
|
|
| Equity
|
| Amount: | $35 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
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