Summary
KKR & Co. Inc. (KKR) filed an 8-K on February 1, 2013, to report the entry into a material definitive agreement related to the issuance of new debt. Specifically, KKR Group Finance Co. II LLC, a subsidiary, along with KKR & Co. L.P. and other subsidiaries as guarantors, entered into an indenture with The Bank of New York Mellon Trust Company, N.A. This agreement establishes the terms for $500 million in 5.500% Senior Notes due in 2043. These notes are unsecured and unsubordinated, with interest paid semi-annually and a maturity date in 2043. The indenture includes standard covenants that restrict the company's ability to incur secured debt or engage in significant asset sales or mergers, and it outlines events of default. Investors should note the provision for a mandatory repurchase at 101% of principal in the event of a change of control, offering some protection. This debt issuance represents a capital-raising activity for KKR, potentially to fund operations, investments, or general corporate purposes. The long maturity of the notes (30 years) suggests a strategic move to secure long-term financing at a fixed rate. The report also details the exhibits filed, which include the base indenture, a first supplemental indenture, and the form of the notes.
Key Highlights
- 1KKR issued $500 million in 5.500% Senior Notes due 2043.
- 2The debt issuance occurred on February 1, 2013.
- 3The notes are unsecured and unsubordinated obligations.
- 4Interest on the notes will be paid semi-annually at a rate of 5.500% per annum.
- 5The indenture includes covenants limiting the incurrence of secured debt and major corporate transactions.
- 6A change of control event triggers a mandatory repurchase offer at 101% of the principal amount.
- 7The issuance was facilitated through KKR Group Finance Co. II LLC with guarantees from KKR & Co. L.P. and other subsidiaries.