8-KMaterial AgreementsFinancial EventsExhibits & Filings

KKR & Co. Inc. 8-K Report, Material Agreement (Mar 23, 2018)

Filed March 23, 2018For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) filed an 8-K on March 23, 2018, to report on the completion of a significant debt offering by its indirect subsidiary, KKR Group Finance Co. IV LLC. The offering consisted of ¥40.3 billion (approximately $375 million USD at the time, based on exchange rates) in senior notes with varying maturities and interest rates: ¥25 billion due in 2023 at 0.509%, ¥5 billion due in 2025 at 0.764%, and ¥10.3 billion due in 2038 at 1.595%. These notes are guaranteed by KKR & Co. L.P. and several other KKR indirect subsidiaries, making them unsecured and unsubordinated obligations of the issuer and guarantors. The proceeds from this offering are intended to further strengthen KKR's financial flexibility and support its ongoing operations and strategic initiatives. The filing also details the covenants and events of default as stipulated in the indenture governing these notes, providing transparency on the terms and conditions of the debt.

Key Highlights

  • 1KKR subsidiary issued ¥40.3 billion in senior notes across three tranches: 2023 (0.509% coupon), 2025 (0.764% coupon), and 2038 (1.595% coupon).
  • 2The debt offering was completed on March 23, 2018.
  • 3The notes are guaranteed by KKR & Co. L.P. and other key KKR subsidiaries.
  • 4The issued notes are unsecured and unsubordinated obligations.
  • 5The indenture includes standard covenants regarding indebtedness, liens, mergers, and asset sales.
  • 6Events of default are defined, including automatic acceleration upon bankruptcy or insolvency.
  • 7The issuer retains the option to redeem the notes under specific tax-related circumstances.

Frequently Asked Questions

This 8-K filing announces the completion of a debt offering by a KKR subsidiary, KKR Group Finance Co. IV LLC, involving the issuance of ¥40.3 billion in senior notes. It details the terms, maturity dates, interest rates, and guarantees associated with this new debt.

The notes are issued by KKR Group Finance Co. IV LLC and are fully and unconditionally guaranteed by KKR & Co. L.P. and several other KKR indirect subsidiaries. This means that KKR & Co. L.P. and its guarantors are jointly and severally liable for these obligations.

The notes have staggered maturities and interest rates: ¥25 billion due in 2023 at 0.509% per annum, ¥5 billion due in 2025 at 0.764% per annum, and ¥10.3 billion due in 2038 at 1.595% per annum. Interest is payable semi-annually.

No, the notes are described as unsecured and unsubordinated obligations of both the issuer and the guarantors. This means they rank equally with other unsecured and unsubordinated debt and do not have specific assets backing them in case of default.