8-KMaterial AgreementsFinancial EventsRegulation FD+1

KKR & Co. Inc. 8-K Report, Material Agreement (May 30, 2024)

Filed May 30, 2024For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) has filed an 8-K report detailing a significant debt financing transaction. On May 30, 2024, an indirect subsidiary, KKR Group Finance Co. XI LLC, completed the offering of approximately ¥81.8 billion (roughly $525 million USD at current approximate exchange rates) in senior notes across five different maturity tranches, ranging from 2029 to 2054. These notes carry varying interest rates, from 1.559% to 3.008%. The offering is backed by guarantees from KKR & Co. Inc. and KKR Group Partnership L.P. The proceeds from this offering are designated for general corporate purposes, indicating a strategic move to bolster the company's liquidity and financial flexibility. The notes are unsecured and unsubordinated obligations, and the indenture includes standard covenants related to indebtedness, mergers, and asset sales, as well as provisions for events of default and change of control repurchases. This issuance diversifies KKR's debt maturity profile and provides capital to support its ongoing operations and growth initiatives.

Key Highlights

  • 1KKR Group Finance Co. XI LLC completed a ¥81.8 billion senior notes offering across five tranches with maturities from 2029 to 2054.
  • 2The notes bear interest rates ranging from 1.559% to 3.008% annually.
  • 3KKR & Co. Inc. and KKR Group Partnership L.P. provided full and unconditional guarantees for the notes.
  • 4Proceeds from the offering will be used for general corporate purposes.
  • 5The notes are unsecured and unsubordinated debt obligations.
  • 6The indenture includes covenants restricting certain actions, such as incurring secured debt or merging, and provisions for events of default and change of control repurchases.

Frequently Asked Questions

The offering consisted of approximately ¥44.6 billion in 2029 Notes, ¥1.0 billion in 2031 Notes, ¥26.2 billion in 2034 Notes, ¥10.0 billion in 2044 Notes, and ¥9.6 billion in 2054 Notes, totaling approximately ¥81.4 billion.

The company intends to use the net proceeds from the sale of the notes for general corporate purposes.

The notes are unsecured and unsubordinated obligations of the Issuer. However, they are fully and unconditionally guaranteed, jointly and severally, by KKR & Co. Inc. and KKR Group Partnership L.P.

The notes have the following maturities and interest rates: 1.559% due 2029, 1.762% due 2031, 2.083% due 2034, 2.719% due 2044, and 3.008% due 2054.