Chicago, Aug. 11 – KKR & Co. Inc. priced an upsized $1 billion, or 20 million shares, of $50-par three-year series C mandatory convertible preferred stock (BBB+) after the market close on Tuesday, according to a news release.
Price talk was for a $750 million offering with a dividend of 5.75% to 6.25% and an initial conversion premium of 17.5% to 22.5%, according to a market source.
Goldman Sachs & Co. LLC, KKR Capital Markets LLC and Morgan Stanley & Co. LLC are joint bookrunners for the registered offering, which carries a greenshoe of $150 million, or 3 million shares, upsized from $112.5 million, or 2.25 million shares.
The shares will be callable if the acquisition of Global Atlantic Financial Group Ltd. is not completed by May 7, 2021.
Proceeds, together with cash on hand, will be used to fund the acquisition.
If the acquisition is not completed and the shares are not called, proceeds will be used for general corporate purposes.
KKR is a New York-based private equity company.
| Issuer: | KKR & Co. Inc.
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| Securities: | Series C mandatory convertible preferred stock
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| Amount: | $1 billion or 20 million shares
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| Greenshoe: | $150 million or 3 million shares
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| Maturity: | Sept. 15, 2023
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| Bookrunners: | Goldman Sachs & Co. LLC, KKR Capital Markets LLC and Morgan Stanley & Co. LLC
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| Dividend: | 6%
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| Price: | Par of $50
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| Conversion rate: | Maximum of 1.1662 and minimum 1.4285
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| Call options: | Conditional if acquisition is not completed
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| Pricing date: | Aug. 11
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| Settlement date: | Aug. 14
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| Distribution: | Registered
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| Talk: | $750 million offering with a dividend of 5.75% to 6.25% and an initial conversion premium of 17.5% to 22.5%
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| Stock symbol: | NYSE: KKR
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| Stock price: | $35.00
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| Market capitalization: | $29.58 billion
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