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KKR Real Estate Finance Trust Closes $1.3 Billion CLO

August 19, 2021, 07:00 AM
Filed Under: Real Estate

KKR Real Estate Finance Trust announced the closing of KREF 2021-FL2, a $1.3 billion managed Commercial Real Estate Collateralized Loan Obligation (“FL2 CRE CLO”) on August 16, 2021. In conjunction with this transaction, the Company called KREF 2018-FL1. The FL2 CRE CLO finances one mortgage loan and 19 pari passu participation interests in KREF’s loan portfolio, and provides KREF with match-term financing on a non-mark-to-market and non-recourse basis. The FL2 CRE CLO features a two-year reinvestment period with an 84% advance rate at a weighted average running cost of capital of L+1.30% (before amortized costs).

Matt Salem, Chief Executive Officer of KREF stated: “The closing of our $1.3 billion CLO allowed us to refinance our 2018 $1.0 billion CLO and increases the Company’s match-term financing on a non-mark-to-market and non-recourse basis.”

Patrick Mattson, President and Chief Operating Officer of KREF, added: “The combination of our brand, track record as a manager and quality of our loan portfolio positioned us to achieve attractive financing with a market-leading cost of capital.”

Wells Fargo Securities, LLC, KKR Capital Markets LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and MUFG Securities Americas Inc. served as co-lead managers and joint bookrunners.

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