KKR, subsidiaries get $750 million 364-day revolving credit agreement

By Marisa Wong

Morgantown, W.Va., July 6 – KKR & Co. LP and some of its subsidiaries entered into a 364-day revolving credit agreement on June 29 with Mizuho Bank, Ltd. as administrative agent, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The credit agreement provides for revolving borrowings of up to $750 million, expires on June 28, 2018 and ranks pari passu with the company’s existing $500 million credit facility.

Borrowings may only be used to facilitate the settlement of debt transactions syndicated by KKR’s capital markets business, the filing noted. Obligations under the agreement are limited to KKR, KKR Capital Markets Holdings LP and some other capital market subsidiaries.

The interest rate will be Libor plus an applicable margin ranging from 125 basis points to 250 bps, depending on the duration of the loan. A 20-bps facility fee is also payable on the entire facility amount.

The credit agreement includes a financial covenant requiring the borrowers to maintain a maximum debt to equity ratio.

KKR is a New York City-based private equity firm.

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