Summary
KKR & Co. Inc. (KKR) has filed an 8-K report detailing the execution of a Third Amended and Restated Credit Agreement on July 3, 2024. This agreement effectively restates and amends a prior credit facility, establishing a senior unsecured multicurrency revolving credit facility with an initial aggregate principal amount of $2.75 billion. The facility includes an option to increase the amount by an additional $750 million, bringing the total potential borrowing capacity to $3.50 billion, subject to lender commitments. The credit facility is set for a five-year term, maturing on July 3, 2029, with a possibility for extension and the ability for KKR to prepay, terminate, or reduce commitments without penalty. This facility is crucial for KKR's ongoing corporate finance activities, providing flexibility for general corporate purposes in various currencies. The agreement incorporates key financial covenants, including a maximum leverage ratio of not greater than 4.0x covenant EBITDA (with specific exclusions for certain subsidiaries like KKR Financial Holdings LLC and Global Atlantic) and a minimum of $150 billion in fee-paying assets under management. These covenants, along with other customary provisions, ensure financial discipline and provide assurance to lenders. The credit facility is guaranteed by KKR & Co. Inc. and other entities that guarantee specified senior notes, strengthening the overall creditworthiness of the facility.
Key Highlights
- 1KKR entered into a Third Amended and Restated Credit Agreement on July 3, 2024.
- 2The agreement establishes a senior unsecured multicurrency revolving credit facility with an initial capacity of $2.75 billion.
- 3The facility has an accordion feature allowing for an increase of up to an additional $750 million, potentially reaching $3.50 billion.
- 4The credit facility matures on July 3, 2029, and is a five-year term, with an option for extension.
- 5Borrowings are available for general corporate purposes and can be made in U.S. dollars and other currencies.
- 6Key financial covenants include a maximum leverage ratio of 4.0x covenant EBITDA (with specific exclusions) and a minimum of $150 billion in fee-paying assets under management.
- 7The facility is guaranteed by KKR & Co. Inc. and other related entities, and KKR has the flexibility to prepay or reduce commitments without penalty.