Summary
KKR & Co. Inc. (KKR) has announced its intention to issue and sell $550,000,000 aggregate principal amount of 6.875% Subordinated Notes due 2065. This offering, expected to close on May 28, 2025, is a strategic move to raise capital. The Notes are guaranteed on a subordinated unsecured basis by KKR Group Partnership L.P. The underwriters also have a 30-day option to purchase an additional $82,500,000 in Notes to cover potential over-allotments, which could bring the total offering size up to $632,500,000. This debt issuance is being conducted under a previously filed registration statement, indicating a standard capital-raising activity for the company. Investors considering these Notes should note the subordinated and unsecured nature of the guarantee, which implies a higher risk profile compared to senior secured debt. The fixed coupon rate of 6.875% provides a predictable income stream, but the long maturity of 2065 means investors are locking in this rate for an extended period.
Key Highlights
- 1KKR & Co. Inc. is issuing $550 million in 6.875% Subordinated Notes due 2065.
- 2The offering is expected to close on May 28, 2025.
- 3KKR Group Partnership L.P. is providing a subordinated unsecured guarantee for the Notes.
- 4Underwriters have an option to purchase an additional $82.5 million in Notes for over-allotments.
- 5The issuance is being made under a previously effective Form S-3 registration statement.
- 6The Underwriting Agreement includes customary representations, warranties, and indemnification clauses.