8-KMaterial AgreementsFinancial EventsExhibits & Filings

KKR & Co. Inc. 8-K Report, Material Agreement (Mar 18, 2015)

Filed March 18, 2015For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) filed an 8-K on March 18, 2015, announcing the completion of an additional offering of $500,000,000 aggregate principal amount of its 5.125% Senior Notes due 2044. These notes are an add-on to an existing series and form a single series with the previously issued notes. The offering was conducted through an indirect subsidiary, KKR Group Finance Co. III LLC, and is guaranteed by KKR & Co. L.P. and other indirect subsidiaries. The issuance of these senior notes is a material definitive agreement and represents a direct financial obligation for the registrant. The terms of the notes include a 5.125% annual interest rate, payable semi-annually, with a maturity date of June 1, 2044. The indenture governing the notes includes standard covenants such as limitations on incurring secured indebtedness and restrictions on mergers or asset sales. Importantly, the notes are subject to repurchase by the Issuer at 101% of their principal amount in the event of a change of control.

Key Highlights

  • 1KKR completed an offering of an additional $500 million in aggregate principal amount of its 5.125% Senior Notes due 2044.
  • 2The new notes are fungible and form a single series with the existing $500 million of 5.125% Senior Notes due 2044 previously issued.
  • 3The notes are issued by KKR Group Finance Co. III LLC, an indirect subsidiary, and are guaranteed by KKR & Co. L.P. and other indirect subsidiaries.
  • 4The senior notes bear a fixed interest rate of 5.125% per annum, payable semi-annually.
  • 5The notes mature on June 1, 2044, unless redeemed or repurchased earlier.
  • 6The indenture includes covenants restricting the incurrence of secured debt and significant corporate actions like mergers or asset sales.
  • 7A 'change of control' event triggers a mandatory repurchase of the notes by the issuer at 101% of their principal amount plus accrued interest.

Frequently Asked Questions

This 8-K filing announces that KKR & Co. L.P. has completed the offering of an additional $500 million of its 5.125% Senior Notes due 2044. This is a disclosure event related to a material definitive agreement and the creation of a direct financial obligation.

KKR raised $500 million in aggregate principal amount through the issuance of 5.125% Senior Notes due 2044. These notes accrue interest at 5.125% per annum, payable semi-annually, and mature on June 1, 2044.

Yes, the notes are guaranteed fully and unconditionally, jointly and severally, by KKR & Co. L.P. and other specified indirect subsidiaries, including KKR Management Holdings L.P., KKR Fund Holdings L.P., and KKR International Holdings L.P.

If a change of control repurchase event occurs, the holders of these senior notes have the right to require the issuer to repurchase the notes. The repurchase price would be 101% of the aggregate principal amount of the notes repurchased, plus any accrued and unpaid interest.