KKR Real Estate Finance (NYSE: KREF) amends term loan and expands revolver

Rhea-AI Filing Summary

KKR Real Estate Finance Trust Inc. updated its key credit facilities to adjust pricing and add borrowing capacity. On September 8, 2025, subsidiary KREF Holdings X LLC entered into an amendment to its Term Loan Credit Agreement that adds $101,375,000 of 2025 Incremental Term Loans, bringing total term loans outstanding to $650,000,000. The amendment also reduces the term loan interest margin by 0.75% to Term SOFR plus 2.50%, with newly funded term loans issued at an original price of 99.75%.

Separately, on September 10, 2025, KREF X executed an eleventh amendment to its Revolving Credit Agreement, increasing lender commitments from $660,000,000 to $700,000,000. The company states that other material terms and conditions of both the term loan and revolving facilities remain unchanged.

Insights

Real estate finance and capital structure analyst

KKR Real Estate Finance Trust refines loan pricing and expands revolving capacity while keeping other terms intact.

The company, through subsidiary KREF Holdings X LLC, has added $101,375,000 of 2025 Incremental Term Loans, bringing total term loans under the amended agreement to $650,000,000. At the same time, the interest margin on the term loans was reduced by 0.75% to Term SOFR plus 2.50%, and newly funded term loans, including the incremental tranche, were issued at an original price of 99.75%.

In a separate move, the eleventh amendment to the revolving credit agreement increases lender commitments from $660,000,000 to $700,000,000, while leaving other material terms unchanged. These changes adjust the mix, cost, and available size of the company’s secured debt facilities; the actual impact will depend on how much of the increased capacity is drawn and future interest rate levels referenced by Term SOFR.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 8, 2025

KKR Real Estate Finance Trust Inc.

(Exact name of registrant as specified in its charter)

Maryland		001-38082		47-2009094
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

30 Hudson Yards, Suite 7500
New York, New York		10001
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 750-8300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class		Trading Symbol(s)		Name of each exchange on which registered
	Common stock, par value $0.01 per share		KREF		New York Stock Exchange
	6.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share		KREF PRA		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

Amendment to Senior Secured Credit Facility

On September 8, 2025, KREF Holdings X LLC (“KREF X”), a wholly owned subsidiary of KKR Real Estate Finance Trust Inc. (the “Company”), and certain specified subsidiaries of the Company entered into Amendment No. 1 (the “Amendment”) to the Term Loan Credit Agreement, dated as of March 5, 2025, among KREF X, as borrower, KKR Real Estate Finance Holdings L.P. (“Opco”), certain specified subsidiaries of the Company, Goldman Sachs Bank USA (“Goldman Sachs”), as administrative agent, and the lenders party thereto from time to time (the “Credit Agreement” and as amended by the Amendment, the “Amended Credit Agreement”).

The Credit Agreement was amended by the Amendment to, among other things, (i) incur 2025 Incremental Term Loans (as defined in the Amended Credit Agreement) in the aggregate principal amount of $101,375,000, increasing the total amount of term loans outstanding under the Amended Credit Agreement to $650,000,000, (ii) reduce the rate at which the term loans bear interest by 0.75% to Term SOFR plus 2.50% and (iii) reset the 101% soft call for six months. The original issue price of newly funded term loans including the 2025 Incremental Term Loans was 99.75%.

Other material terms, provisions, and conditions of the Credit Agreement remain unchanged.

Certain lenders under the Amended Credit Agreement and/or their affiliates may have other business relationships with the Company involving the provision of financial and banking-related services, including cash management, loans, letters of credit and bank guarantee facilities, investment banking and trust services.

Amendment to Revolving Credit Agreement

On September 10, 2025, KREF X entered into the Eleventh Amendment (the “Eleventh Amendment”) to the Credit Agreement, dated December 20, 2018, by and among KREF X, Opco, certain subsidiary guarantors of Opco party thereto and Morgan Stanley Senior Funding, Inc., as the administrative agent (as amended, restated, supplemented or otherwise modified from time to time, the “Revolving Credit Agreement”). The Eleventh Amendment increases the commitments from $660,000,000 to $700,000,000. Other material terms, provisions, and conditions of the Revolving Credit Agreement remain unchanged.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		KKR Real Estate Finance Trust Inc.
	By:	/s/ Kelly Galligan
		Name: Kelly Galligan
		Title: General Counsel and Secretary
Date: September 11, 2025

FAQ

What credit facility changes did KKR Real Estate Finance Trust Inc. (KREF) disclose?

The company reported an amendment to its term loan credit agreement that adds $101,375,000 of 2025 Incremental Term Loans and lowers the interest margin, and a separate eleventh amendment to its revolving credit agreement that increases commitments from $660,000,000 to $700,000,000.

How much total term loan debt is outstanding under KREF's amended term loan agreement?

After incurring the $101,375,000 of 2025 Incremental Term Loans, total term loans outstanding under the amended term loan credit agreement are $650,000,000.

How did the interest rate on KREF's term loans change in this amendment?

The amendment reduced the rate at which the term loans bear interest by 0.75%, so they now accrue interest at Term SOFR plus 2.50%.

What is the original issue price of KREF's newly funded term loans?

The company states that the original issue price of newly funded term loans, including the 2025 Incremental Term Loans, was 99.75%.

How much revolving credit capacity does KREF now have under its revolving credit agreement?

Following the eleventh amendment to the revolving credit agreement, total lender commitments increased from $660,000,000 to $700,000,000.

Did KREF change other material terms in its amended credit facilities?

The company indicates that other material terms, provisions, and conditions of both the term loan credit agreement and the revolving credit agreement remain unchanged.