Summary
KKR & Co. L.P. (the "Partnership") filed an 8-K on March 15, 2016, reporting on an Underwriting Agreement entered into on March 10, 2016. This agreement outlines the terms for the issuance and sale of 12,000,000 shares of 6.75% Series A Preferred Units, with a liquidation preference of $25.00 per unit. The offering also includes an option for underwriters to purchase an additional 1,800,000 units to cover over-allotments. The offering is being conducted under a registration statement filed with the SEC and is expected to close on March 17, 2016. The Underwriting Agreement includes standard provisions such as representations, warranties, conditions to closing, indemnification, and termination clauses. This filing is significant for investors as it signals capital raising activity by KKR through the issuance of preferred equity, which typically offers a fixed dividend yield and a preferential claim on assets in liquidation.
Key Highlights
- 1KKR & Co. L.P. entered into an Underwriting Agreement on March 10, 2016.
- 2The agreement concerns the issuance and sale of 12,000,000 Series A Preferred Units.
- 3The Series A Preferred Units carry a fixed dividend rate of 6.75% and a liquidation preference of $25.00 per unit.
- 4Underwriters have an option to purchase up to an additional 1,800,000 units for over-allotments.
- 5The offering is being made pursuant to a registration statement filed with the SEC.
- 6The expected closing date for the offering is March 17, 2016.
- 7The Underwriting Agreement contains customary provisions for such transactions.