Kohlberg Kravis Roberts 8-K

Summary

KKR amended and restated its corporate revolving credit facility, replacing the agreement dated 7/3/2024. The new five-year facility provides up to $3.0B in revolving commitments for general corporate purposes.

Key Figures

• Facility: $3.0B senior unsecured, multicurrency revolving credit facility, with an option to request up to $750M in additional commitments, subject to conditions and lender consent.
• Maturity: 7/30/2031; extension is subject to lender consent. Borrowers may prepay, terminate or reduce commitments without penalty.
• Pricing: U.S. dollar borrowings bear term SOFR or alternate base rate; the term SOFR margin is 57.5–112.5 bp, based on KKR’s credit ratings. The annual fee on total commitments is 5–12.25 bp, also ratings-based.
• Covenants: maximum leverage of 4.0x covenant EBITDA, excluding Global Atlantic’s indebtedness, and at least $195B in fee-paying assets under management. KKR & Co. Inc. guarantees the facility; proceeds are available in U.S. dollars and other currencies.

Investor Takeaways

• Covenant compliance, including the fee-paying assets requirement, is a key metric to monitor over the facility’s term.