8-KRegulation FDExhibits & Filings

KKR & Co. Inc. 8-K Report, Regulation FD Disclosure (Jun 17, 2019)

Filed June 17, 2019For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) announced on June 17, 2019, that its indirect subsidiary, KKR Group Finance Co. VI LLC, has priced an offering of $500 million of 3.750% Senior Notes due 2029. These new notes are fully guaranteed by KKR & Co. Inc. and other key KKR entities. The primary purpose of this debt issuance is to redeem KKR's outstanding 6.375% Senior Notes due 2020, which also had a principal amount of $500 million. This move signals KKR's proactive approach to managing its debt profile, aiming to lower its overall interest expense and extend its debt maturity. Investors should note that the new notes were offered under Rule 144A and Regulation S, indicating they were sold to institutional investors and non-U.S. persons and are not registered under the Securities Act. The refinancing strategy is expected to improve the company's cost of capital and financial flexibility. The details of the note pricing and the redemption plan were disclosed via a press release furnished as an exhibit to the 8-K filing.

Key Highlights

  • 1KKR subsidiary priced a new $500 million offering of 3.750% Senior Notes due 2029.
  • 2The new notes are fully and unconditionally guaranteed by KKR & Co. Inc. and other significant KKR entities.
  • 3Proceeds will be used to redeem the entire $500 million of outstanding 6.375% Senior Notes due 2020.
  • 4This action aims to reduce KKR's interest expenses and extend its debt maturity profile.
  • 5The offering was conducted under Rule 144A and Regulation S, targeting institutional and non-U.S. investors.
  • 6The new notes have not been registered under the Securities Act.

Frequently Asked Questions

The primary purpose of this filing is to disclose the pricing of a new debt offering by a KKR subsidiary. Specifically, KKR Group Finance Co. VI LLC priced $500 million of 3.750% Senior Notes due 2029. The net proceeds are intended to be used to redeem the company's existing 6.375% Senior Notes due 2020.

This offering is part of a debt refinancing strategy. KKR is issuing new, lower-interest notes (3.750%) to pay off older, higher-interest notes (6.375%). This will effectively reduce KKR's annual interest payments and extend the maturity of $500 million of its debt from 2020 to 2029.

The new notes are fully and unconditionally guaranteed by KKR & Co. Inc., KKR Management Holdings L.P., KKR Fund Holdings L.P., and KKR International Holdings L.P.

No, the notes were offered pursuant to Rule 144A and Regulation S, meaning they were sold to qualified institutional buyers and non-U.S. persons, respectively. They have not been registered under the Securities Act of 1933 and generally cannot be offered or sold in the U.S. without registration or an applicable exemption.