KKR gets $1 billion multicurrency revolver at Libor plus 90 bps

By Tali Rackner

Norfolk, Va., Oct. 24 – KKR & Co. LP said Kohlberg Kravis Roberts & Co. LP, KKR Fund Holdings LP, KKR Management Holdings LP and KKR International Holdings LP entered into a five-year credit agreement on Wednesday with HSBC Bank USA, NA as administrative agent.

The new agreement replaces the existing $750 million credit agreement dated Feb. 11, 2011, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a $1 billion senior multicurrency revolving credit facility with an option to increase by up to $250 million.

The facility matures on Oct. 22, 2019 and has an option to be extended.

Borrowings initially bear interest at Libor plus 90 basis points with a range of 69 bps to 120 bps over Libor.

The facility fee is currently 10 bps and ranges from 6 bps to 17.5 bps.

Proceeds will be used for general corporate purposes.

The credit agreement includes financial covenants that require KKR and its subsidiaries to maintain a maximum consolidated leverage ratio of 4 times and to maintain at least $40 billion of fee-paying assets under management.

HSBC Securities (USA) Inc. is the lead arranger and bookrunner.

KKR is a New York-based alternative asset manager.

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