Kramer Van Kirk Credit Strategies, an investment firm based in Chicago, is in the market with its sixth collateralized loan obligation.
Credit Suisse Securities is arranging the $619.5 million deal, dubbed KVK CLO 2014-2, according to rating agency presale reports. Both Moody’s Investors Service and Standard & Poor's have assigned preliminary AAA’ ratings to a $378 million class A tranche that is being marketed at a spread of 155 basis points over three-month Libor.
The deal has a relatively short non-call period ending in July 2016; if the notes are not called, or redeemed, at that date the manager may continue to actively manage the portfolio for another two years, until July 2018.
Kramer Van Kirk was established in 2012. It currently has five CLOs under management with total assets of $2.875 billion.
As of June 2, 2014, the issuer had identified approximately 65% of the portfolio's collateral, which it is expected to have committed to purchase by the closing date, according to the presale report.
Editor's note: an earlier version of this article misstated the number of CLOs that Kramer Van Kirk manages.