Summary
KKR & Co. Inc. (KKR) has filed an 8-K report to disclose the entry into a new 364-day revolving credit agreement for its capital markets business. This new agreement, dated April 7, 2023, replaces a previous one set to expire. The new facility provides up to $750 million in revolving borrowings and extends the maturity to April 5, 2024. This action is a routine refinancing designed to ensure continued access to essential credit facilities for KKR's debt syndicate operations. The agreement specifies interest rates based on SOFR, EURIBOR, or SONIA (plus applicable margins), or ABR (plus applicable margins). Importantly, the borrowings under this new facility are solely for KKR's capital markets business to facilitate debt transaction settlements and are non-recourse to the broader KKR entity. This structure limits the financial risk to the specific capital markets subsidiaries involved. The agreement includes standard covenants and is secured by certain assets of the borrowing entities.
Key Highlights
- 1KKR's capital markets subsidiaries entered into a new 364-day revolving credit agreement on April 7, 2023.
- 2The new agreement replaces a prior 364-day revolving credit facility with a later maturity date.
- 3The facility provides up to $750 million in revolving borrowings.
- 4The maturity date for the new agreement is April 5, 2024.
- 5Borrowings are restricted to facilitating the settlement of debt transactions syndicated by KKR's capital markets business.
- 6Liabilities under the agreement are non-recourse to other parts of KKR, limiting risk to the capital markets subsidiaries.
- 7The agreement includes customary covenants and is secured by certain assets of the borrowers.