KKR units close $1 billion five-year senior multicurrency revolver

By Sarah Lizee

Olympia, Wash., Dec. 7 – KKR & Co. Inc.’s Kohlberg Kravis Roberts & Co. LP unit entered into an amended and restated credit agreement on Friday with HSBC Bank USA, NA as administrative agent that provides for a $1 billion senior unsecured multicurrency revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

KKR Fund Holdings LP, KKR Management Holdings LP and KKR International Holdings LP are also borrowers under the credit agreement.

The borrowers have the option to request an increase in the facility amount of up to an additional $500 million, for a total principal amount of $1.5 billion, subject to some conditions.

The revolver is scheduled to mature on Dec. 7, 2023. There is an option to extend the maturity date, subject to some conditions.

Borrowings bear interest at Libor plus 56.5 basis points to 110 bps, based on ratings. Initially, interest is Libor plus 79.5 bps.

The facility fee is 6 bps to 15 bps, also depending on ratings. Initially, the fee is 8 bps.

Financial covenants require KKR and its subsidiaries to maintain a maximum consolidated leverage ratio of no greater than 4x and to maintain at least $55 billion in fee paying assets under management.

HSBC Securities (USA) Inc. is the lead arranger and bookrunner.

KKR is an investment management company based in New York.

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