KKR Real Estate Finance Trust Inc. Announces Closure of $ 1.3 Billion CLO



NEW YORK–() – KKR Real Estate Finance Trust Inc. (The “Company” or “KREF”) (NYSE: KREF) today announced the closure of KREF 2021-FL2, a $ 1.3 billion secured managed loan commitment for commercial real estate (“FL2 CRE CLO”) on August 16, 2021 … In connection with this transaction, the Company called KREF 2018-FL1. FL2 CRE CLO finances one mortgage loan and 19 pari passu shares in KREF’s loan portfolio and provides KREF with agreed financing without market value and no recourse. FL2 CRE CLO has a two-year reinvestment period with an advance rate of 84% at a weighted average present value of capital L + 1.30% (before depreciation).

Matt Salem, Chief Executive Officer of KREF, said: “The closure of our $ 1.3 billion CLO allowed us to refinance our $ 1.0 billion CLO in 2018 and increase the agreed financing of the Company, excluding market value and recourse. ”

Patrick Mattson, President and Chief Operating Officer of KREF, added: “The combination of our brand, managerial experience and the quality of our loan portfolio has enabled us to achieve attractive financing with 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 an invitation to offer to buy, nor is it permitted to sell these securities in any state or jurisdiction in which such an offer, offer, or sale would be illegal prior to registration or qualification in accordance with the securities laws of any such state or jurisdiction.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. is a real estate finance company that primarily provides and receives pre-emptive loans secured by commercial real estate. KREF is managed and consulted by an affiliate of KKR & Co. Inc. For more information on KREF, visit its website at www.kkrreit.com

Forward-looking statements

This press release contains forward-looking statements within the meaning of “safe harbor” Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Stock Exchange Act of 1934, as amended. Forward-looking statements refer to expectations, beliefs, projections, plans and strategies for the future, expected events or trends, and similar statements regarding matters that are not historical facts. Forward-looking statements are based on the beliefs, assumptions and expectations of the Company regarding its future results, taking into account all the information currently available to it. These beliefs, assumptions and expectations may change as a result of a variety of possible events or factors, not all of which are known or controlled by the Company. Forward-looking statements are valid only as of the date of this press release or the date they are made, and the Company assumes no obligation to update any forward-looking statements, except as required by law. Information on factors affecting the Company and forward-looking statements are available in the Company’s 10-K Annual Report for the financial year ended December 31, 2020, as well as in other documents filed with the Securities and Exchange Commission, which are available at www.sec.gov


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