KKR greenshoe lifts 6% convertible preferreds to $1.15 billion

By Marisa Wong

Los Angeles, Aug. 14 – The underwriters of KKR & Co. Inc.’s offering of $50-par three-year series C mandatory convertible preferred stock (BBB+) exercised their $150 million over-allotment option in full, increasing the total size of the issuance to $1.15 billion, according to an 8-K filed Friday with the Securities and Exchange Commission.

KKR priced an upsized $1 billion, or 20 million shares, of the 6% convertible preferred stock after the market close on Tuesday, as previously reported. The greenshoe was upsized to $150 million, or 3 million shares, from $112.5 million, or 2.25 million shares.

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.

Each share will automatically convert on Sept. 15, 2023 into between 1.1662 shares and 1.4285 shares of common stock.

The shares will be callable if KKR’s 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.