Chicago, March 24 – KKR Group Finance Co. IX LLC sold an upsized $500 million offering of $25-par subordinated notes due April 1, 2061 with a 4.625% coupon (BBB+/BBB+), according to a market source.
The offering was upsized from $200 million with the coupon coming lower than talk, which had it in the 4.875% area.
The notes will be callable in whole after five years and may be callable beforehand upon a tax event or rating agency event, according to a 424B5 filing with the Securities and Exchange Commission.
Interest will be payable quarterly. The issuer may defer interest payments during one or more deferral periods for up to five consecutive years.
Wells Fargo Securities LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and KKR Capital Markets LLC are the bookrunners.
The proceeds, along with cash on hand, will be used to redeem one or more of the series of KKR & Co. Inc.’s outstanding series A preferred stock and series B preferred stock.
Any remaining proceeds will be used for general corporate purposes.
KKR is a New York-based global investment firm.
| Issuer: | KKR Group Finance Co. IX LLC
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| Issue: | Subordinated notes
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| Amount: | $500 million, upsized
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| Maturity: | April 1, 2061
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| Bookrunners: | Wells Fargo Securities LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and KKR Capital Markets LLC
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| Coupon: | 4.625%
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| Price: | Par of $25
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| Yield: | 4.625%
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| Call features: | After five years
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| Trade date: | March 24
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| Ratings: | S&P: BBB+
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| Fitch: BBB+
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| Price talk: | $200 million size and 4.875% coupon area
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