DEBT OBLIGATIONS (Tables)

6 Months Ended

Jun. 30, 2019

KKR's borrowings consisted of the following:



	June 30, 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	434,222		—		—			451,338		—		—
KCM Short-Term Credit Agreement	750,000		—		—			750,000		—		—
Notes Issued:
KKR Issued 6.375% Notes Due 2020 ⁽¹⁾	—		499,268		523,705		⁽¹⁵⁾	—		498,975		523,500		⁽¹⁵⁾
KKR Issued 5.500% Notes Due 2043 ⁽²⁾	—		492,005		580,650		⁽¹⁵⁾	—		491,836		508,615		⁽¹⁵⁾
KKR Issued 5.125% Notes Due 2044 ⁽³⁾	—		990,922		1,102,750		⁽¹⁵⁾	—		990,740		974,320		⁽¹⁵⁾
KKR Issued 0.509% Notes Due 2023 ⁽⁴⁾	—		231,130		232,979		⁽¹⁵⁾	—		226,895		227,298		⁽¹⁵⁾
KKR Issued 0.764% Notes Due 2025 ⁽⁵⁾	—		45,798		46,819		⁽¹⁵⁾	—		44,923		45,161		⁽¹⁵⁾
KKR Issued 1.595% Notes Due 2038 ⁽⁶⁾	—		94,531		100,676		⁽¹⁵⁾	—		92,817		94,568		⁽¹⁵⁾
KKR Issued 1.625% Notes Due 2029 ⁽⁷⁾	—		728,823		755,204		⁽¹⁶⁾	—		—		—
KFN Issued 5.500% Notes Due 2032 ⁽⁸⁾	—		493,809		504,296			—		493,568		496,359
KFN Issued 5.200% Notes Due 2033 ⁽⁹⁾	—		118,351		117,620			—		118,291		115,582
KFN Issued 5.400% Notes Due 2033 ⁽¹⁰⁾	—		68,728		69,966			—		68,683		68,780
KFN Issued Junior Subordinated Notes ⁽¹¹⁾	—		232,802		188,058			—		232,142		203,135
Other Debt Obligations:
Financing Facilities of Consolidated Funds and Other ⁽¹²⁾	4,044,217		6,179,352		6,179,352			3,840,877		5,123,768		5,123,768
CLO Senior Secured Notes ⁽¹³⁾	—		13,153,552		13,153,552			—		11,667,970		11,667,970
CLO Subordinated Notes ⁽¹³⁾	—		434,411		434,411			—		413,801		413,801
CMBS Debt Obligations ⁽¹⁴⁾	—		1,922,303		1,922,303			—		1,876,783		1,876,783
	$	6,228,439	$	25,685,785	$	25,912,341		$	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 $0.5 million and $0.7 million as of June 30, 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 June 30, 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 $7.8 million and $8.0 million as of June 30, 2019 and December 31, 2018, respectively.


(4)	¥25 billion (or $232.3 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.1 million and $1.3 million as of June 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY").


(5)	¥5.0 billion (or $46.5 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 June 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.


(6)	¥10.3 billion (or $95.7 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 June 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.


(7)	€650 million (or $738.7 million) aggregate principal amount of 1.625% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $6.6 million as of June 30, 2019. These senior notes are denominated in Euro.

(8)

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 $4.2 million and $4.4 million as of June 30, 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 $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.6 million and $1.7 million as of June 30, 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 $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 June 30, 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)

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 5.1% and 5.0% and the weighted average years to maturity is 17.3 years and 17.8 years as of June 30, 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.

(12)

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, (ii) borrowings by certain majority-owned investment vehicles that are collateralized only by the investments and assets they own and (iii) a borrowing by a wholly-owned special purpose vehicle which is secured by corporate real estate that it acquired in May 2019. The weighted average interest rate is 4.6% and 4.6% as of June 30, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.5 years and 3.3 years as of June 30, 2019 and December 31, 2018, respectively.


(13)	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."


(14)	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."


(15)	The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

(16) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed.

Schedule of debt obligations of consolidated CLOs

As of June 30, 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	$	13,153,552	3.2	%	11.4
Subordinated Notes of Consolidated CLOs	434,411		(1)		11.6
Debt Obligations of Consolidated CMBS Vehicles	1,922,303		4.0	%	24.3
	$	15,510,266

(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.