Summary
KKR & Co. Inc. (KKR) filed an 8-K on December 7, 2018, to announce the closing of an Amended and Restated Credit Agreement. This new agreement establishes a senior unsecured multicurrency revolving credit facility totaling $1.00 billion, with an option to increase it by an additional $500 million, bringing the total potential facility to $1.50 billion. This facility is a five-year agreement, maturing on December 7, 2023, and allows for borrowings for general corporate purposes. The company has the flexibility to prepay or terminate the facility without penalty. Key terms include financial covenants requiring KKR to maintain a maximum consolidated leverage ratio of 4.0x and a minimum of $55 billion in fee-paying assets under management. The facility is guaranteed by KKR & Co. Inc. and certain other entities that guarantee existing senior notes. This refinancing enhances KKR's liquidity and financial flexibility, providing a substantial credit line for its ongoing operations and strategic initiatives.
Key Highlights
- 1KKR entered into an Amended and Restated Credit Agreement, establishing a $1.00 billion senior unsecured multicurrency revolving credit facility.
- 2The facility has an accordion feature, allowing for an increase of up to an additional $500 million, for a total potential of $1.50 billion.
- 3The credit facility has a five-year term, maturing on December 7, 2023, with an option for borrowers to extend the maturity date.
- 4Borrowings are available for general corporate purposes, and the facility can be prepaid or terminated without penalty.
- 5Key financial covenants include a maximum consolidated leverage ratio of 4.0x and a minimum of $55 billion in fee-paying assets under management.
- 6The credit facility is guaranteed by KKR & Co. Inc. and other entities guaranteeing existing KKR senior notes, reinforcing the creditworthiness of the facility.
- 7HSBC Bank USA, National Association is the Administrative Agent for the credit facility.