Summary
KKR & Co. Inc. (KKR) announced a significant financing event on July 1, 2019, through its indirect subsidiary, KKR Group Finance Co. VI LLC. The company completed the offering of $500 million in aggregate principal amount of 3.750% Senior Notes due 2029. These notes are guaranteed by KKR & Co. Inc. and other indirect subsidiaries, providing a strong credit backing. The offering extends KKR's debt maturity profile and secures long-term funding at a favorable interest rate. The new notes are unsecured and unsubordinated, with a 10-year maturity, and include standard covenants to protect bondholders. Additionally, KKR announced the full redemption of its $500 million in outstanding 6.375% Senior Notes due 2020, which is scheduled for July 31, 2019. This move effectively refinances a portion of its existing debt at a lower coupon rate and extends the maturity of this debt.
Key Highlights
- 1KKR successfully issued $500 million of 3.750% Senior Notes due 2029.
- 2The new notes have a maturity of 10 years, extending KKR's debt profile.
- 3KKR & Co. Inc. and key subsidiaries provide full and unconditional guarantees for the new notes.
- 4The notes are unsecured and unsubordinated obligations.
- 5The offering was completed on July 1, 2019, with interest payable semi-annually.
- 6KKR will redeem its $500 million of 6.375% Senior Notes due 2020 in full on July 31, 2019.
- 7The redemption of the 2020 notes signifies a refinancing at a lower interest rate and a longer maturity.