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.