S&P gives KKR notes BBB+

S&P said it gave its BBB+ issue rating to KKR Group Finance Co. IX LLC's proposed offering of subordinated notes due in 2061. KKR Group Finance Co. IX LLC is an issuing subsidiary of KKR & Co. Inc.

“The size of the issuance will be determined by market conditions, but, for our analysis, we are assuming the notes will be approximately $500 million, S&P said in a press release.

The notes are deferrable for at least five years, subordinated, and have a maturity of longer than 20 years. “We view the company's proposed subordinated notes issuance as hybrid capital with intermediate equity content and rate it two notches below our A issuer credit rating on KKR, reflecting subordination and optional deferability,” S&P said in a press release.

Proceeds are expected to be used to refinance the company's perpetual preferred stock; series A becomes callable in June and series B in September.

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