8-KMaterial AgreementsFinancial EventsOther Events+1

KKR & Co. Inc. 8-K Report, Material Agreement (Jul 1, 2019)

Filed July 1, 2019For Securities:KKRKKRTKKR-PDKKRS

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.

Frequently Asked Questions

The issuance of the $500 million in Senior Notes due 2029 serves to extend KKR's debt maturity profile and secure long-term funding. It also allows KKR to refinance existing, higher-interest debt, as indicated by the planned redemption of the 2020 notes.

The new notes have an aggregate principal amount of $500 million, bear a fixed interest rate of 3.750% per annum, and mature on July 1, 2029. They are unsecured and unsubordinated obligations of the issuer, KKR Group Finance Co. VI LLC, and are fully guaranteed by KKR & Co. Inc. and other subsidiaries. Interest is paid semi-annually.

KKR is redeeming its 6.375% Senior Notes due 2020 to take advantage of lower interest rates available in the market and to extend the maturity of this portion of its debt. This is a strategic refinancing move to reduce borrowing costs and optimize its capital structure.

The guarantees from KKR & Co. Inc. and its subsidiaries mean that these entities are jointly and severally liable for the obligations of the notes. This provides investors with increased security and confidence in the repayment of the principal and interest.