KKR’s 6.75% noncumulative preferred units admitted to NYSE

By Stephanie N. Rotondo

Seattle, March 28 – KKR & Co. LP’s $345 million of 6.75% series A noncumulative perpetual preferred units listed on the New York Stock Exchange on Monday, according to a market source.

The ticker symbol is “KKRPA.”

The $300 million issue priced March 10. A $45 million greenshoe was fully exercised on March 17.

Price talk was around 6.75%. The deal came upsized from $150 million.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners. Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and Mizuho Securities USA Inc. were the joint lead managers.

When declared, distributions will be made on the 15th day of March, June, September and December, beginning June 15. The units become redeemable on or after June 15, 2021 at par plus accrued distributions.

The units can also be redeemed prior to that date upon a change of control at $25.25 a share plus accrued distributions. If such an event occurs and the company does not give notice of redemption prior to the 31st day following the event, the distribution rate increases by 5%.

Proceeds will be used for general corporate purposes, including to fund acquisitions and investments.

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