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KKR Real Estate Finance Trust Closes $1B CLO

February 22, 2022, 07:03 AM
Filed Under: Real Estate

KKR Real Estate Finance Trust announced the closing of KREF 2022-FL3, a $1.0 billion managed Commercial Real Estate Collateralized Loan Obligation (“FL3 CRE CLO”) on February 10, 2022. The FL3 CRE CLO finances two mortgage loans and 14 pari passu participation interests in KREF’s loan portfolio, all in the multifamily property segment, and provides KREF with match-term financing on a non-mark-to-market and non-recourse basis. The FL3 CRE CLO features a two-year reinvestment period with an 84.75% advance rate at a weighted average running cost of capital of one-month Term SOFR + 1.71% (before amortized costs).

Patrick Mattson, President and Chief Operating Officer of KREF, stated: “The closing of our $1.0 billion CLO marks KREF’s third CLO issuance, and our second in the past six months as KREF continues to build upon its brand name recognition and strong track record in the CRE CLO market. The issuance will serve to increase the Company’s match-term financing on a non-mark-to-market and non-recourse basis.”

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.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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