KKR Real Estate Finance Trust Inc. Announces Closing of $1.3 Billion CLO
NEW YORK–(BUSINESS WIRE) – KKR Real Estate Finance Trust Inc. (the “Company” or “KREF”) (NYSE: KREF) today announced the completion of KREF 2021-FL2, a $ 1.3 billion managed secured loan facility for commercial real estate US Dollars (“FL2 CRE CLO”) on August 16, 2021. In connection with this transaction, the Company named KREF 2018-FL1. The FL2 CRE CLO finances a mortgage loan and 19 pari-passu stakes in KREF’s loan portfolio and offers KREF unrivaled financing on a non-mark-to-market and recourse basis. The FL2 CRE CLO offers a two year reinvestment period with an advance rate of 84% with a weighted average ongoing cost of capital of L + 1.30% (before amortized costs).
Matt Salem, Chief Executive Officer of KREF stated, “Closing our CLO of $ 1.3 billion enabled us to refinance our CLO of $ 1.0 billion for 2018 and add to the company’s timely funding Non-mark-to-market and recourse basis. ”
Patrick Mattson, President and Chief Operating Officer of KREF, added, “The combination of our brand, our track record as managers and the quality of our loan portfolio has enabled us to obtain 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. acted as Co-Lead Managers and Joint Bookrunners.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will any sale of these securities be made in any state or jurisdiction in which such offer, solicitation or sale is prior to registration or Qualified under the securities laws of such state or jurisdiction.
About KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. is a real estate finance company primarily focused on obtaining and acquiring senior loans backed by commercial real estate. KREF is managed and advised externally by a subsidiary of KKR & Co. Inc. You can find more information about KREF on the website www.kkrreit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, expected events or trends, and similar statements about matters that are not historical facts. The forward-looking statements are based on the company’s beliefs, assumptions and expectations with regard to its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change due to many possible events or factors, all of which are not known to or under the control of the company. The forward-looking statements speak only as of the date of this press release or the date of its publication, and the company assumes no obligation to update any forward-looking statements unless required by law. Information about factors affecting the company and the forward-looking statements are available in the company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in other filings with the Securities and Exchange Commission available at www. sek.gov.