8-KMaterial AgreementsFinancial Events

KKR & Co. Inc. 8-K Report, Material Agreement (Apr 14, 2021)

Filed April 14, 2021For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) filed an 8-K on April 13, 2021, detailing a material definitive agreement related to its capital markets business. Specifically, on April 9, 2021, KKR Capital Markets Holdings L.P. and certain other capital market subsidiaries entered into a new 364-day revolving credit agreement, replacing a similar prior agreement that terminated on the same date. This new agreement, with a maturity of April 8, 2022, provides for revolving borrowings of up to $750 million.

Key Highlights

  • 1KKR's capital markets subsidiaries entered into a new 364-day revolving credit agreement on April 9, 2021.
  • 2The new credit facility has a maximum borrowing capacity of $750 million.
  • 3The agreement matures on April 8, 2022, extending the maturity from the prior agreement.
  • 4The prior 364-day revolving credit agreement, dated April 10, 2020, was terminated as per its terms.
  • 5Interest rates vary based on the loan type (Eurocurrency or ABR) and include an applicable margin ranging from 1.50% to 2.75% (Eurocurrency) or 0.50% to 1.75% (ABR).
  • 6Borrowings under the new agreement are restricted to facilitating the settlement of debt transactions syndicated by KKR's capital markets business.
  • 7Liabilities under this agreement are non-recourse to the broader KKR entity, limited to the capital markets subsidiaries involved.

Frequently Asked Questions

The new $750 million revolving credit agreement is designed to facilitate the settlement of debt transactions syndicated by KKR's capital markets business. It replaces an expiring similar agreement.

No, the liabilities under this new agreement are non-recourse to the broader KKR entity. The obligations are limited to the specific capital markets subsidiaries that are borrowers under the agreement.

The interest rate depends on the type of drawdown. For Eurocurrency loans, it's based on LIBOR plus an applicable margin ranging from 1.50% to 2.75%. For ABR Loans, it's based on the prime rate plus an applicable margin ranging from 0.50% to 1.75%.

The new 364-day revolving credit agreement matures on April 8, 2022.