NEW YORK CITY—Shares of KKR Real Estate Finance Trust Inc. began trading on the New York Stock Exchange at $21 per share Friday after the mortgage REIT priced its initial public offering at $20.50 per share late Thursday evening. The IPO pricing at the low end of its target range was for 10,250,000 shares of KREF's common stock, and the REIT had also granted the underwriters a 30-day option to purchase up to an additional 1,537,500 shares at the IPO price.
KREF said it expects to receive net proceeds of approximately $191 million from the IPO. Proceeds will be used to originate or acquire senior loans secured by commercial real estate assets, as well as mezzanine loans, preferred equity and other debt-oriented investments. statement.
The offering is being made through an underwriting group led by Wells Fargo Securities, Morgan Stanley and KKR, who are acting as joint book-running managers for the offering. Barclays, Goldman Sachs and J.P. Morgan are acting as additional book-running managers. Keefe, Bruyette & Woods is acting as a co-manager.
The first investment vehicle of of KKR's Real Estate Credit business, which was launched in 2015, KREF began with a $400-million commitment from KKR. The private equity giant subsequently capitalized was then a non-traded REIT via a private placement that gave it approximately $838 million of equity capital available, along with $1 billion of existing borrowing capacity across its lending facilities. In an article on the Seeking Alpha website Wednesday, CIO Don Dion of DRD Investments LLC pointed to KKR backing as a plus for KREF, along with “growing top aand bottom lines.”
In its S-11 filing last month, KREF cited “strong demand for CRE debt capital driven by a high volume of over-leveraged, near-term loan maturities, strong transaction volume fueled by improved economic conditions and CRE fundamentals and continued global capital inflows” for US commercial real estate investment. In addition, “constrained supply of CRE debt capital driven in large part by more restrictive underwriting standards from conventional financing sources compounded by increasing regulatory pressures have created a potential opportunity for alternative lenders like us to serve as attractive debt capital solutions providers to the real estate market.”
KREF said it expects to receive net proceeds of approximately $191 million from the IPO. Proceeds will be used to originate or acquire senior loans secured by commercial real estate assets, as well as mezzanine loans, preferred equity and other debt-oriented investments. statement.
The offering is being made through an underwriting group led by
The first investment vehicle of of KKR's Real Estate Credit business, which was launched in 2015, KREF began with a $400-million commitment from KKR. The private equity giant subsequently capitalized was then a non-traded REIT via a private placement that gave it approximately $838 million of equity capital available, along with $1 billion of existing borrowing capacity across its lending facilities. In an article on the Seeking Alpha website Wednesday, CIO Don Dion of DRD Investments LLC pointed to KKR backing as a plus for KREF, along with “growing top aand bottom lines.”
In its S-11 filing last month, KREF cited “strong demand for CRE debt capital driven by a high volume of over-leveraged, near-term loan maturities, strong transaction volume fueled by improved economic conditions and CRE fundamentals and continued global capital inflows” for US commercial real estate investment. In addition, “constrained supply of CRE debt capital driven in large part by more restrictive underwriting standards from conventional financing sources compounded by increasing regulatory pressures have created a potential opportunity for alternative lenders like us to serve as attractive debt capital solutions providers to the real estate market.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.