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.