8-KMaterial AgreementsFinancial EventsRegulation FD+1

KKR & Co. Inc. 8-K Report, Material Agreement (May 25, 2023)

Filed May 25, 2023For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) filed an 8-K on May 25, 2023, to report on a significant financing transaction. The company's indirect subsidiary, KKR Group Finance Co. XI LLC, completed the offering of an aggregate of approximately ¥76.3 billion (roughly $540 million USD, based on approximate exchange rates at the time) in senior notes across various maturities ranging from 2028 to 2053. These notes carry coupon rates from 1.428% to 2.747% and are guaranteed by KKR & Co. Inc. and KKR Group Partnership L.P. The net proceeds from this offering are intended for general corporate purposes, indicating the company's ongoing capital management and funding strategies. The issuance of these notes, offered under Rule 144A and Regulation S, highlights KKR's access to diverse capital markets to support its operations and growth initiatives. The filing details covenants, events of default, and repurchase provisions, including a change of control clause, providing transparency on the terms and conditions associated with this debt issuance.

Key Highlights

  • 1KKR Group Finance Co. XI LLC, an indirect subsidiary, completed a substantial offering of senior notes totaling approximately ¥76.3 billion.
  • 2The notes are issued across multiple maturity dates, from 2028 to 2053, offering a long-term financing structure.
  • 3Coupon rates on the notes range from 1.428% to 2.747% per annum, reflecting current market interest rates for KKR's debt.
  • 4KKR & Co. Inc. and KKR Group Partnership L.P. provide full and unconditional guarantees for the notes.
  • 5Proceeds from the offering are designated for general corporate purposes.
  • 6The notes are unsecured and unsubordinated obligations.
  • 7The indenture includes standard covenants, events of default, and a change of control repurchase provision at 101% of principal.

Frequently Asked Questions

The aggregate principal amount of the senior notes offering was ¥76,300,000,000 (which translates to approximately $540 million USD based on approximate exchange rates around the filing date).

The net proceeds from the sale of the notes are intended for general corporate purposes.

The senior notes are fully and unconditionally guaranteed by KKR & Co. Inc. (the Corporation) and KKR Group Partnership L.P.

Noteholders are protected by covenants limiting the Issuer's and Guarantors' ability to incur certain secured debt or engage in significant asset sales. The indenture also specifies events of default that can lead to acceleration of the debt, and a change of control repurchase event requires the Issuer to repurchase notes at 101% of the principal amount plus accrued interest.