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.