Sotheby's reaches a $100 million financing agreement with KKR, using auction commission receivables as collateral.

According to the Financial Times, Sotheby's has reached a financing agreement with private equity firm KKR, with a maximum loan amount of $100 million. The financing is secured by the auction commission payable to Sotheby's by collectors after winning bids. The report cited documents disclosed to credit investors last week, stating that Sotheby's has not yet utilized the KKR credit line. This partnership will allow Sotheby's to immediately recoup receivables from auctions in New York and London. According to sources familiar with the matter who declined to be named, Sotheby's plans to use this financing to quickly pay a portion of the proceeds to consignors after the auction ends. Sotheby's will pay an annual interest rate higher than 8% on this loan. The credit line has a maturity date for repayment in 2029.