KKR & CO. INC. : Entering into a Material Definitive Agreement, Terminating a Material Definitive Agreement, Creating a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant (Form 8-K)
Section 1.01 Entering into a Material Definitive Agreement.
The information set out in Section 2.03 is incorporated by reference into this Section 1.01.
Section 1.02 Termination of a Material Definitive Agreement.
The information set out in Section 2.03 is incorporated by reference into this Section 1.02.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under a
Off-balance sheet arrangement of a registrant.
If a loan is made on the Contract, the interest rate will vary according to the type of direct debit requested. If the loan is (i) denominated in
dollars and a forward rate, it will be based on the Secured Overnight Financing Rate (SOFR), (ii) denominated in euros, it will be based on EURIBOR and (iii) denominated in pounds sterling, it will be based on Sterling Overnight Average Interbank Rate (SONIA), in each case, plus the applicable margin which initially varies between 1.50% and 2.75%, depending on the term of the loan. If the loan is an ABR loan, it will be based on the greater of (i) the federal funds rate plus 0.50% and (ii) the term SOFR for a term of one month plus 1.00%, in each case, plus the applicable margin which initially varies between 0.50% and 1.75% depending on the amount and nature of the loan. Borrowings under the Agreement may only be used to facilitate the settlement of debt transactions syndicated by KKR’s capital markets business. Obligations under the Agreement are limited to the Borrowers, who are solely entities involved in KKR’s capital markets business, and liabilities under the Agreement are without recourse to other parties of KKR.
The agreement contains customary representations and warranties, events of default and positive and negative clauses, including a financial clause providing for a maximum debt ratio for borrowers. The obligations of the Borrowers under the Agreement are secured by certain assets of the Borrowers, including a pledge of interests in certain subsidiaries of the Borrowers.
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