Daily News: January 24, 2014

GreensLedge Arranges KKR Financial $384MM CLO

KKR Financial Holdings announced the closing of KKR Financial CLO 2013-2, a $384 million collateralized loan obligation transaction. GreensLedge Capital Markets LLC acted as arranger and placement agent and KKR Capital Markets LLC acted as placement agent.

Proceeds will be used to finance a portfolio of primarily senior secured leveraged loans. The CLO has a four-year reinvestment period and a two-year non-call period, with a final maturity of January 23, 2026.

KKR Financial Advisors II, a wholly-owned subsidiary of KKR Asset Management LLC, will serve as collateral manager. KKR Asset Management oversaw approximately $21 billion of predominantly credit investments as of September 30, 2013.

The Company will hold the entirety of the CLO’s approximately $45 million of subordinated notes. Apart from these subordinated notes held by the company, the notes issued by CLO 2013-2 are non-recourse to the company.

Craig J. Farr, CEO of KFN, said: “This transaction reflects our goal of being a frequent issuer in the CLO market. We continue to see attractive risk-adjusted cash returns in CLO subordinated notes, which have the added benefit of diversifying KFN’s CLO portfolio.”

KKR Financial Holdings is a specialty finance company with expertise in a range of asset classes.