Summary
KKR & Co. Inc. (KKR) announced the entry into a new 364-day revolving credit agreement on June 28, 2018, with Mizuho Bank, Ltd. This new facility provides up to $750 million in revolving borrowings, replacing a prior agreement that expired on June 28, 2018. The primary purpose of these borrowings is to facilitate the settlement of debt transactions syndicated by KKR's capital markets business. Importantly, the obligations under this new agreement are limited to the capital markets subsidiaries and are non-recourse to the broader KKR entity, mitigating direct financial risk to the parent company.
Key Highlights
- 1KKR secured a new $750 million, 364-day revolving credit facility.
- 2The new facility replaces a previous $750 million credit agreement that expired.
- 3Borrowings are exclusively for settling debt transactions within KKR's capital markets business.
- 4The credit facility ranks equally (pari passu) with an existing $500 million credit facility for KKR's capital markets business.
- 5Obligations are restricted to KKR's capital markets subsidiaries and are non-recourse to other KKR entities.
- 6Interest rates will vary based on loan type (Eurocurrency or ABR) and duration, with applicable margins and a 0.20% facility fee.
- 7The agreement includes standard covenants and a financial covenant regarding the borrowers' debt-to-equity ratio, with obligations secured by certain borrower assets.