Auction house Sotheby’s has secured a revolving credit facility with KKR that can draw up to $100 million against client auction‑fee receivables. The loan adds fresh debt to a balance sheet already carrying more than $1 billion of bonds and bank facilities, seven years after billionaire Patrick Drahi’s leveraged buyout. No drawdown has been reported yet and could be tapped as early as next quarter.

Sotheby’s hopes to use the financing to accelerate seller payouts, which under standard terms arrive 45 days after a sale. By pledging fee receivables, the house can offer sellers a 7% interest option to defer payment, preserving cash significantly while the market remains uneven. The facility carries an interest rate above 8% and matures in 2029.

The credit line follows a recent $825 million bond issuance that priced at roughly an 8.5% yield, reflecting investor wariness over the auction house’s junk‑grade ratings (B3/ B‑). Moody’s upgraded Sotheby’s outlook to positive and S&P to stable, but the new KKR loan underscores the need for liquidity as the firm works to turn a $190 million loss into a modest profit.