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DEBT OBLIGATIONS (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of borrowings
KKR's borrowings consisted of the following:
 
March 31, 2019
 
December 31, 2018
 
 
Financing Available
 
Borrowing Outstanding
 
Fair Value
 
Financing Available
 
Borrowing Outstanding
 
Fair Value
 
Revolving Credit Facilities:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Credit Agreement
$
1,000,000

 
$

 
$

 
$
1,000,000

 
$

 
$

 
KCM Credit Agreement
434,395

 

 

 
451,338

 

 

 
KCM Short-Term Credit Agreement
750,000

 

 

 
750,000

 

 

 
Notes Issued:
 
 
 
 
 
 
 
 
 
 
 
 
KKR Issued 6.375% Notes Due 2020 (1)

 
499,122

 
523,900

(14) 

 
498,975

 
523,500

(14) 
KKR Issued 5.500% Notes Due 2043 (2)

 
491,921

 
537,235

(14) 

 
491,836

 
508,615

(14) 
KKR Issued 5.125% Notes Due 2044 (3)

 
990,831

 
1,030,140

(14) 

 
990,740

 
974,320

(14) 
KKR Issued 0.509% Notes Due 2023 (4)

 
224,386

 
223,695

(14) 

 
226,895

 
227,298

(14) 
KKR Issued 0.764% Notes Due 2025 (5)

 
44,435

 
45,402

(14) 

 
44,923

 
45,161

(14) 
KKR Issued 1.595% Notes Due 2038 (6)

 
91,767

 
96,510

(14) 

 
92,817

 
94,568

(14) 
KFN Issued 5.500% Notes Due 2032 (7)

 
493,689

 
502,524

 

 
493,568

 
496,359

 
KFN Issued 5.200% Notes Due 2033 (8)

 
118,321

 
117,152

 

 
118,291

 
115,582

 
KFN Issued 5.400% Notes Due 2033 (9)

 
68,705

 
69,689

 

 
68,683

 
68,780

 
KFN Issued Junior Subordinated Notes (10)

 
232,471

 
197,478

 

 
232,142

 
203,135

 
Other Debt Obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Financing Facilities of Consolidated Funds and Other (11)
4,216,970

 
4,534,329

 
4,534,329

 
3,840,877

 
5,123,768

 
5,123,768

 
CLO Senior Secured Notes (12)

 
12,155,621

 
12,155,621

 

 
11,667,970

 
11,667,970

 
CLO Subordinated Notes (12)

 
402,200

 
402,200

 

 
413,801

 
413,801

 
CMBS Debt Obligations (13)

 
1,914,571

 
1,914,571

 

 
1,876,783

 
1,876,783

 
 
$
6,401,365

 
$
22,262,369

 
$
22,350,446

 
$
6,042,215

 
$
22,341,192

 
$
22,339,640

 
(1)
$500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.6 million and $0.7 million as of March 31, 2019 and December 31, 2018, respectively.
(2)
$500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.5 million and $3.6 million as of March 31, 2019 and December 31, 2018, respectively.
(3)
$1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.9 million and $8.0 million as of March 31, 2019 and December 31, 2018, respectively.
(4)
¥25 billion (or $225.6 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY").
(5)
¥5.0 billion (or $45.1 million) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.7 million and $0.7 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.
(6)
¥10.3 billion (or $92.9 million) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.2 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.
(7)
KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.3 million and $4.4 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.
(8)
KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.7 million and $1.7 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.
(9)
KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.3 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.
(10)
KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 5.2% and 5.0% and the weighted average years to maturity is 17.5 years and 17.8 years as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.
(11)
Amounts include (i) borrowings at consolidated investment funds relating to financing arrangements with major financial institutions, generally to enable such investment funds to make investments prior to or without receiving capital from fund limited partners and (ii) borrowings by certain majority-owned investment vehicles that are collateralized only by the investments and assets they own. The weighted average interest rate is 4.9% and 4.6% as of March 31, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.6 years and 3.3 years as of March 31, 2019 and December 31, 2018, respectively.
(12)
CLO debt obligations are carried at fair value and are classified as Level II within the fair value hierarchy. See Note 5 "Fair Value Measurements."
(13)
CMBS debt obligations are carried at fair value and are classified as Level III within the fair value hierarchy. See Note 5 "Fair Value Measurements."
(14)
The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.
Schedule of debt obligations of consolidated CLOs
As of March 31, 2019, debt obligations of consolidated CFEs consisted of the following:     
 
Borrowing
Outstanding
 
Weighted
Average
Interest Rate
 
Weighted Average Remaining Maturity in Years
Senior Secured Notes of Consolidated CLOs
$
12,155,621

 
3.4
%
 
11.5
Subordinated Notes of Consolidated CLOs
402,200

 
(1)

 
11.7
Debt Obligations of Consolidated CMBS Vehicles
1,914,571

 
4.0
%
 
24.5
 
$
14,472,392

 
 

 
 
(1)
The subordinated notes do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.