8-KMaterial AgreementsFinancial Events

KKR & Co. Inc. 8-K Report, Material Agreement (Apr 13, 2023)

Filed April 13, 2023For Securities:KKRKKRTKKR-PDKKRS

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.

Frequently Asked Questions

The main purpose of this filing is to report the entry into a new material definitive agreement, specifically a new 364-day revolving credit agreement for KKR's capital markets subsidiaries, and the termination of the prior agreement.

The new credit facility provides for revolving borrowings of up to $750 million and expires on April 5, 2024.

No, the filing explicitly states that obligations under the agreement are limited to the Borrowers (entities involved in KKR's capital markets business) and that liabilities under the agreement are non-recourse to other parts of KKR. This means the debt is only backed by the assets of the specific capital markets subsidiaries.

Interest rates will vary based on the currency and type of drawdown. For USD term rate loans, it will be based on Term SOFR; for EUR loans, on EURIBOR; and for Sterling loans, on SONIA. For ABR Loans, it will be based on the greater of the federal funds rate plus 0.50% or one-month term SOFR plus 1.00%. All rates are subject to an applicable margin based on loan duration and amount.