KKR Completes $900M Senior Notes Offering

KKR & Co. Inc. has completed a $900 million senior notes offering with a 5.100% interest rate due 2035, guaranteed by KKR Group Partnership L.P. The notes are unsecured, unsubordinated, and have various covenants and redemption provisions. This move enhances KKR's financial flexibility for future initiatives.

KKR & Co. Inc. (NYSE: KKR) has successfully completed a $900 million offering of senior notes. The notes, which carry a 5.10% interest rate and are due in 2035, are guaranteed by KKR Group Partnership L.P. This financing move enhances KKR's financial flexibility, allowing the firm to pursue future initiatives [1].

The senior notes are unsecured and unsubordinated, with various covenants and redemption provisions. The proceeds from the sale of these notes will be used to repurchase and refinance existing indebtedness of KKR Financial Holdings LLC, with any remaining funds allocated for general corporate purposes [1].

The offering was led by Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., KKR Capital Markets LLC, and UBS Investment Bank, acting as joint book-running managers. The offering was conducted pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC) [1].

The completion of this offering follows KKR's Q2 2025 earnings report, which revealed a slight miss in earnings per share (EPS) and revenue compared to analysts' expectations. The company's Q2 2025 EPS was $0.60, missing the forecasted $0.63 by 4.76%, while revenue was $398 million, down from the expected $401.63 million [2]. Despite this, the company maintained its 13.83% dividend yield, which has been consistently paid for 12 consecutive years. The stock price, however, dropped 7.21% to $18.74 in pre-market trading following the earnings announcement [2].

References:
[1] https://www.morningstar.com/news/business-wire/20250804654705/kkr-announces-offering-of-senior-notes
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-fs-kkr-capital-misses-q2-2025-forecasts-stock-dips-93CH-4178009