Summary
KKR & Co. Inc. (KKR) filed an 8-K on March 31, 2021, to report the completion of a $500 million offering of 4.625% subordinated notes due 2061. The notes are issued by an indirect subsidiary, KKR Group Finance Co. IX LLC, and are guaranteed by KKR & Co. Inc. and another indirect subsidiary, KKR Group Partnership L.P. These notes represent a new long-term debt obligation for the company, maturing in 40 years. This issuance provides KKR with long-term capital, potentially to fund operations, investments, or other strategic initiatives. Investors should note that these are subordinated notes, meaning they rank below senior debt in the event of bankruptcy or liquidation. The offering includes standard covenants, redemption provisions (including options for early redemption after April 1, 2026, or under specific "tax redemption event" or "rating agency event" conditions), and events of default typical for such debt instruments.
Key Highlights
- 1KKR completed a $500 million offering of 4.625% subordinated notes due 2061.
- 2The notes are issued by indirect subsidiary KKR Group Finance Co. IX LLC.
- 3KKR & Co. Inc. and KKR Group Partnership L.P. provide full and unconditional guarantees for the notes.
- 4The notes are unsecured and subordinated obligations.
- 5The offering matures in 40 years, on April 1, 2061.
- 6The notes can be redeemed by the issuer on or after April 1, 2026, at par, or under specific "tax redemption event" or "rating agency event" conditions.
- 7The Indenture includes covenants limiting the incurrence of secured debt and M&A activities.