KKR Real Estate Finance Trust wraps $348M term loan tight to talk; terms

Investors have received allocations of the $348 million term loan B due September 2027 for KKR Real Estate Finance Trust that repriced the issuer's existing term loan and tacked on a $50 million fungible add-on, according to sources. The deal priced tight to talk at L+350, with a 0.50% Libor floor and an issue price of par via lead arranger J.P. Morgan, before freeing to a 100.125/100.625 market. The deal lowers the spread on the existing covenant-lite term loan from L+475, with a 1% floor, and proceeds from the add-on will be used for general corporate purposes. The borrower is KREF Holdings X LLC, a mortgage real estate investment trust focused primarily on originating and acquiring senior loans secured by commercial real estate assets.

Terms: