In another step forward for the leading new benchmark lending rate in the United States, KKR & Co. switched to the regulator-approved Secured Overnight Financing Rate (SOFR) from LIBOR in the middle of marketing a buyout financing on behalf of Trilantic North America.
When KKR, as lead arranger, began marketing the $545 million leveraged buyout (LBO) of Addison Group in the first week of January, it proposed pricing the loan off LIBOR. Less than two weeks into the sales process, KKR shifted to SOFR from the discredited London interbank offered rate.
The Addison loan was well-received by investors, allowing KKR to also lower the overall yield, according to people familiar with the matter who aren't authorized to speak publicly. The deal remained oversubscribed after the changes and wrapped up late Wednesday, the people said. A KKR representative declined to comment.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.