Summary
KKR & Co. Inc. (KKR) filed an 8-K on April 26, 2022, to report the completion of a significant debt offering by its indirect subsidiary, KKR Group Finance Co. XI LLC. This offering comprised multiple tranches of senior notes denominated in Japanese Yen (¥) with varying maturities ranging from 2027 to 2037 and interest rates between 1.054% and 1.795%. The notes are guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P., providing investors with a direct financial obligation from the parent entity. The proceeds from this debt issuance are earmarked for general corporate purposes, notably funding KKR's previously announced acquisition of Mitsubishi Corp.-UBS Realty Inc. and supporting future acquisitions and investments in Japan. This strategic move indicates KKR's proactive approach to financing growth initiatives and expanding its presence in the Japanese market, leveraging the debt capital markets to fuel its strategic objectives.
Key Highlights
- 1KKR's indirect subsidiary completed a ¥36.4 billion offering of 1.054% Senior Notes due 2027.
- 2The offering also included ¥4.9 billion of 1.244% Senior Notes due 2029, ¥6.2 billion of 1.437% Senior Notes due 2032, ¥7.5 billion of 1.553% Senior Notes due 2034, and ¥5.5 billion of 1.795% Senior Notes due 2037.
- 3KKR & Co. Inc. and KKR Group Partnership L.P. provide full and unconditional guarantees for all the issued notes.
- 4The net proceeds are intended for general corporate purposes, including the acquisition of Mitsubishi Corp.-UBS Realty Inc.
- 5The debt issuance also aims to fund potential future acquisitions and investments in Japan.
- 6The notes are unsecured and unsubordinated obligations of the Issuer and Guarantors.
- 7The Indenture includes covenants related to liens, mergers, and asset sales, as well as provisions for events of default and change of control repurchases.