In another step forward for the leading new benchmark lending rate in the United States, KKR & Co. switched to the regulator-approved Secured Overnight Financing Rate (SOFR) from LIBOR in the middle of marketing a buyout financing on behalf of Trilantic North America.

When KKR, as lead arranger, began marketing the $545 million leveraged buyout (LBO) of Addison Group in the first week of January, it proposed pricing the loan off LIBOR. Less than two weeks into the sales process, KKR shifted to SOFR from the discredited London interbank offered rate.

The Addison loan was well-received by investors, allowing KKR to also lower the overall yield, according to people familiar with the matter who aren't authorized to speak publicly. The deal remained oversubscribed after the changes and wrapped up late Wednesday, the people said. A KKR representative declined to comment.

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