Summary
KKR & Co. Inc. (KKR) announced the pricing of a significant offering of senior notes denominated in Japanese Yen (¥). Specifically, the company's indirect subsidiary, KKR Group Finance Co. IV LLC, successfully priced ¥25 billion of 0.509% notes due 2023, ¥5 billion of 0.764% notes due 2025, and ¥10.3 billion of 1.595% notes due 2038. These notes, issued at par, are fully guaranteed by KKR & Co. L.P. and other KKR entities, indicating strong corporate backing for this debt issuance. The net proceeds from this offering are earmarked for general corporate purposes, with a specific mention of funding potential acquisitions and investments within Japan. This strategic allocation suggests KKR's intention to expand its presence and investment activities in the Japanese market. The offering was conducted under Rule 144A and Regulation S, targeting institutional investors outside the United States, underscoring KKR's access to international capital markets.
Key Highlights
- 1KKR subsidiary priced a ¥40.3 billion aggregate principal amount offering of senior notes in three tranches with varying maturities (2023, 2025, and 2038).
- 2The notes carry relatively low coupon rates: 0.509% for 2023 notes, 0.764% for 2025 notes, and 1.595% for 2038 notes, reflecting favorable borrowing costs.
- 3The offering is fully and unconditionally guaranteed by KKR & Co. L.P. and other key KKR entities, providing investors with strong credit assurance.
- 4Net proceeds are intended for general corporate purposes, including strategic acquisitions and investments specifically in Japan.
- 5The notes were offered to eligible investors outside the United States pursuant to Rule 144A and Regulation S.
- 6The filing includes a press release dated March 14, 2018, detailing the note pricing, furnished as an exhibit.