8-KMaterial AgreementsFinancial EventsExhibits & Filings

KKR & Co. Inc. 8-K Report, Material Agreement (May 29, 2014)

Filed May 29, 2014For Securities:KKRKKRTKKR-PDKKRS

Summary

This SEC Form 8-K filing by KKR & Co. Inc. (KKR) on May 29, 2014, reports on the entry into a material definitive agreement, specifically the issuance of $500 million in 5.125% Senior Notes due 2044. The notes are issued by KKR Group Finance Co. III LLC, an indirect subsidiary, and are fully and unconditionally guaranteed by KKR & Co. L.P. and other indirect subsidiaries. This action represents a significant capital raising event for the company, providing long-term funding at a fixed interest rate. Investors should note that these notes are unsecured and unsubordinated obligations. The indenture includes standard covenants restricting the ability of the issuer and guarantors to incur certain secured indebtedness, merge, consolidate, or sell assets. The filing also outlines events of default and provisions for a change of control repurchase at 101% of the principal amount, offering some protection to noteholders in specific adverse scenarios. The issuance of these senior notes is a key strategic move for KKR to manage its capital structure and fund its ongoing operations and investments.

Key Highlights

  • 1KKR & Co. Inc. issued $500 million in 5.125% Senior Notes due 2044.
  • 2The notes are issued by subsidiary KKR Group Finance Co. III LLC and guaranteed by KKR & Co. L.P. and other indirect subsidiaries.
  • 3The issuance occurred on May 29, 2014, with interest payable semi-annually.
  • 4The notes are unsecured and unsubordinated obligations.
  • 5The indenture includes covenants limiting secured debt, mergers, and asset sales.
  • 6A change of control event triggers a mandatory repurchase offer at 101% of the principal amount.
  • 7This filing pertains to Item 1.01 (Entry into a Material Definitive Agreement) and Item 2.03 (Creation of a Direct Financial Obligation).

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically the issuance of $500 million in 5.125% Senior Notes due 2044 by KKR Group Finance Co. III LLC, an indirect subsidiary of KKR & Co. L.P.

The notes have an aggregate principal amount of $500 million, bear a fixed interest rate of 5.125% per annum, and mature on June 1, 2044. Interest is payable semi-annually. The notes are unsecured and unsubordinated obligations.

Noteholders have protections through standard covenants in the indenture that limit the issuer's and guarantors' ability to incur secured debt or undertake significant corporate actions without consent. Additionally, if a change of control repurchase event occurs, the notes are subject to repurchase by the issuer at 101% of their principal amount, plus accrued interest.

The notes are issued by KKR Group Finance Co. III LLC. However, KKR & Co. L.P., KKR Management Holdings L.P., and KKR Fund Holdings L.P. (all indirect subsidiaries) act as guarantors, providing full and unconditional guarantees for the notes.