KKR Group Finance to sell $200 million $25-par subordinated notes due 2061; talk 4.875% area

By Taylor Fox and Cristal Cody

New York, March 24 – KKR Group Finance Co. IX LLC plans to price $25-par subordinated notes due April 1, 2061 expected to come with an issue size of $200 million, according to a 424B5 filing with the Securities and Exchange Commission and a market source.

Talk has the coupon coming in the 4.875% area.

The notes will be callable in whole after five years and may be callable beforehand upon a tax event or rating agency event.

Interest will be payable quarterly. The issuer may defer interest payments during one or more deferral periods for up to five consecutive years.

Wells Fargo Securities LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and KKR Capital Markets LLC are the bookrunners.

The proceeds, along with cash on hand, will be used to redeem one or more of the series of KKR & Co. Inc.’s outstanding series A preferred stock and series B preferred stock.

Any remaining proceeds will be used for general corporate purposes.

KKR is a New York-based global investment firm.

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