Summary
KKR & Co. Inc. (KKR) filed an 8-K on May 17, 2022, to report the completion of a material definitive agreement related to the issuance of new debt. An indirect subsidiary, KKR Group Finance Co. XII LLC, successfully offered $750 million in aggregate principal amount of 4.850% Senior Notes due 2032. These notes are fully and unconditionally guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P., providing investors with a direct obligation of the consolidated entity. The net proceeds from this offering are intended for general corporate purposes, indicating flexibility in how KKR will utilize the raised capital for its ongoing business operations and growth initiatives.
Key Highlights
- 1KKR's indirect subsidiary completed the issuance of $750 million in aggregate principal amount of 4.850% Senior Notes due 2032.
- 2The new Senior Notes are guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P., offering investors the credit of the parent company.
- 3The net proceeds from the offering are designated for general corporate purposes, allowing for strategic deployment.
- 4The notes are unsecured and unsubordinated obligations of the issuer and guarantors.
- 5The indenture includes covenants restricting the incurrence of certain secured indebtedness and limitations on mergers or asset sales.
- 6The notes are redeemable at the issuer's option, with a 'make-whole' provision before a certain date and at par thereafter.
- 7A change of control repurchase event would trigger an obligation for the issuer to repurchase the notes at 101% of their principal amount plus accrued interest.
Frequently Asked Questions
This 8-K filing primarily announces the completion of a material definitive agreement, specifically the issuance and sale of $750 million of 4.850% Senior Notes due 2032 by an indirect subsidiary of KKR.
The direct obligor is KKR Group Finance Co. XII LLC, an indirect subsidiary. KKR & Co. Inc. and KKR Group Partnership L.P. fully and unconditionally guarantee these notes, making them effectively obligations of the consolidated KKR entity.
KKR intends to use the net proceeds from the sale of these notes for general corporate purposes, which allows flexibility in their application for business operations, investments, or other strategic initiatives.
The notes bear a 4.850% interest rate, mature on May 17, 2032, and are unsecured and unsubordinated. They are subject to redemption by the issuer at specific prices (make-whole or par) and include provisions for repurchase at 101% of principal plus accrued interest in the event of a change of control.