What is the purpose of this 8-K filing for KKR?

This 8-K filing announces a material definitive agreement, specifically the completion of a significant debt financing transaction. KKR's indirect subsidiary issued €650 million in senior notes, which is important for investors to understand the company's capital structure and long-term funding.

What are the key terms of the new senior notes?

The notes have a principal amount of €650,000,000, bear a fixed interest rate of 1.625% per annum, and mature on May 22, 2029. Interest is paid annually in arrears. They are unsecured and unsubordinated obligations, guaranteed by KKR & Co. Inc. and certain other KKR entities.

What protections do investors have with these notes?

Investors are protected by several provisions, including a change of control repurchase event where KKR must repurchase the notes at 101% of the principal amount. The indenture also contains covenants that restrict KKR's ability to incur certain liens or undergo major asset sales, and provides for acceleration of payment upon specified events of default or bankruptcy.

Can KKR redeem these notes early?

Yes, KKR has the option to redeem the notes in whole or in part before their maturity date. Prior to three months before maturity (February 22, 2029), redemption would be at a 'make-whole' price. On or after February 22, 2029, KKR can redeem the notes at par plus accrued interest.

KKR 8-K: Material Agreements & Financial Events

Summary

KKR & Co. Inc. (KKR) filed an 8-K on May 22, 2019, to report a material definitive agreement concerning the issuance of new debt. Specifically, an indirect subsidiary, KKR Group Finance Co. V LLC, completed the offering of €650,000,000 aggregate principal amount of 1.625% Senior Notes due 2029. These notes are guaranteed by KKR & Co. Inc. and several other KKR subsidiaries, making them fully and unconditionally guaranteed obligations of the KKR group. The issuance of these senior notes represents a significant financing event for KKR, providing long-term capital at a relatively low interest rate. Investors should note the terms of the indenture, which include covenants restricting certain actions like incurring secured debt or engaging in major asset sales. The filing also details provisions for redemption, including make-whole provisions prior to maturity and a change of control repurchase event, offering some protection to noteholders.

Key Highlights

1KKR Group Finance Co. V LLC, an indirect subsidiary, issued €650 million in 1.625% Senior Notes due 2029.
2The notes are guaranteed by KKR & Co. Inc. and other KKR subsidiaries, making them senior unsecured obligations of the consolidated group.
3The offering matures on May 22, 2029, with annual interest payments starting May 22, 2020.
4The indenture includes covenants that limit the ability to incur secured debt and restrict mergers or sales of substantially all assets.
5Noteholders have protection through a change of control repurchase provision at 101% of principal.
6The Issuer has the option to redeem the notes prior to maturity, with a make-whole provision before March 2029 and at par thereafter.
7The company has committed to making payments free of withholding taxes, with provisions for additional payments if withholding is required.

KKR & Co. Inc. 8-K Report, Material Agreement (May 22, 2019)

Summary

Key Highlights

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