KKR is undertaking a rare refinancing of a 2014-vintage collateralized loan obligation that does take advantage of a one-time exemption from risk retention requirements.

The $500 million KKR CLO 9 is managed by KKR Financial Advisors II and originally closed in September 2014. On July 11, all of notes will be refinanced from the proceeds of the issuance of new secured notes, according to Fitch Ratings. The new tranche of senior, AAA-rated notes are expected to pay interest of three-month Libor plus a spread of 127 basis points.

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