8-KMaterial AgreementsFinancial EventsExhibits & Filings

KKR & Co. Inc. 8-K Report, Material Agreement (Feb 25, 2020)

Filed February 25, 2020For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) filed an 8-K on February 25, 2020, to report the completion of a significant financing transaction. An indirect subsidiary, KKR Group Finance Co. VII LLC, successfully issued $500 million in aggregate principal amount of 3.625% Senior Notes due 2050. These notes are fully and unconditionally guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P., providing a strong credit backing for the debt issuance. The issuance of these long-term notes signifies KKR's proactive approach to managing its capital structure and potentially funding future growth initiatives or operational needs. The notes mature in 30 years, indicating a long-term financing strategy, and bear a fixed interest rate of 3.625%. Investors should note the unsecured and unsubordinated nature of these notes, as well as the covenants included in the indenture, which place certain restrictions on the company's ability to incur secured indebtedness or undergo significant asset sales and mergers.

Key Highlights

  • 1KKR subsidiary issued $500 million of 3.625% Senior Notes due 2050.
  • 2The notes are guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P.
  • 3The issuance represents long-term debt financing with a maturity of 30 years.
  • 4The notes carry a fixed interest rate of 3.625% per annum, payable semi-annually.
  • 5The notes are unsecured and unsubordinated obligations.
  • 6The indenture includes covenants that limit the ability to incur secured debt and restrict mergers or significant asset sales.
  • 7A change of control provision triggers a repurchase option for noteholders at 101% of the principal amount.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the completion of a material definitive agreement, specifically the issuance of $500 million in aggregate principal amount of 3.625% Senior Notes due 2050 by an indirect subsidiary of KKR.

The notes mature on February 25, 2050, bearing a fixed interest rate of 3.625% per annum, payable semi-annually. They are unsecured and unsubordinated obligations of the issuer and are fully guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P.

Investors are protected by covenants within the indenture that limit the company's ability to incur certain secured indebtedness and restrict major corporate actions like mergers or sales of substantially all assets. Additionally, a change of control event would trigger a repurchase option for noteholders at 101% of the principal amount plus accrued interest.

This issuance increases KKR's long-term debt by $500 million. It provides the company with significant capital that can be used for various purposes, such as funding investments, acquisitions, or general corporate operations. The fixed interest rate provides predictability in interest expense, while the 30-year maturity allows for long-term capital management.