Schedule of borrowings |
KKR's borrowings consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | September 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 | 446,866 |
| | — |
| | — |
| | 451,338 |
| | — |
| | — |
| | KCM Short-Term Credit Agreement | 750,000 |
| | — |
| | — |
| | 750,000 |
| | — |
| | — |
| | Notes Issued: | | | | | | | | | | | | | KKR Issued 6.375% Notes Due 2020 (1) | — |
| | — |
| | — |
| | — |
| | 498,975 |
| | 523,500 |
| (16) | KKR Issued 3.750% Notes Due 2029 (2) | — |
| | 493,804 |
| | 527,780 |
| (16) | — |
| | — |
| | — |
| | KKR Issued 5.500% Notes Due 2043 (3) | — |
| | 492,090 |
| | 615,050 |
| (16) | — |
| | 491,836 |
| | 508,615 |
| (16) | KKR Issued 5.125% Notes Due 2044 (4) | — |
| | 991,014 |
| | 1,180,470 |
| (16) | — |
| | 990,740 |
| | 974,320 |
| (16) | KKR Issued 0.509% Notes Due 2023 (5) | — |
| | 234,205 |
| | 235,551 |
| (16) | — |
| | 226,895 |
| | 227,298 |
| (16) | KKR Issued 0.764% Notes Due 2025 (6) | — |
| | 46,426 |
| | 47,544 |
| (16) | — |
| | 44,923 |
| | 45,161 |
| (16) | KKR Issued 1.595% Notes Due 2038 (7) | — |
| | 95,782 |
| | 103,547 |
| (16) | — |
| | 92,817 |
| | 94,568 |
| (16) | KKR Issued 1.625% Notes Due 2029 (8) | — |
| | 704,792 |
| | 757,666 |
| (17) | — |
| | — |
| | — |
| | KFN Issued 5.500% Notes Due 2032 (9) | — |
| | 493,932 |
| | 506,214 |
| | — |
| | 493,568 |
| | 496,359 |
| | KFN Issued 5.200% Notes Due 2033 (10) | — |
| | 118,381 |
| | 118,149 |
| | — |
| | 118,291 |
| | 115,582 |
| | KFN Issued 5.400% Notes Due 2033 (11) | — |
| | 68,751 |
| | 70,252 |
| | — |
| | 68,683 |
| | 68,780 |
| | KFN Issued Junior Subordinated Notes (12) | — |
| | 233,137 |
| | 178,444 |
| | — |
| | 232,142 |
| | 203,135 |
| | Other Debt Obligations: | | | | | | | | | | | | | Financing Facilities of Consolidated Funds and Other (13) | 3,792,812 |
| | 6,649,098 |
| | 6,649,098 |
| | 3,840,877 |
| | 5,123,768 |
| | 5,123,768 |
| | CLO Senior Secured Notes (14) | — |
| | 13,409,870 |
| | 13,409,870 |
| | — |
| | 11,667,970 |
| | 11,667,970 |
| | CLO Subordinated Notes (14) | — |
| | 447,229 |
| | 447,229 |
| | — |
| | 413,801 |
| | 413,801 |
| | CMBS Debt Obligations and Other (15) | — |
| | 802,691 |
| | 802,691 |
| | — |
| | 1,876,783 |
| | 1,876,783 |
| | | $ | 5,989,678 |
| | $ | 25,281,202 |
| | $ | 25,649,555 |
| | $ | 6,042,215 |
| | $ | 22,341,192 |
| | $ | 22,339,640 |
| |
| | (1) | $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. These senior notes were redeemed in full in July 2019. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.7 million as of December 31, 2018. |
| | (2) | $500 million aggregate principal amount of 3.750% senior notes of KKR due 2029. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.8 million as of September 30, 2019. |
| | (3) | $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 September 30, 2019 and December 31, 2018, respectively. |
| | (4) | $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 September 30, 2019 and December 31, 2018, respectively. |
| | (5) | ¥25 billion (or $235.3 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.0 million and $1.3 million as of September 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY"). |
| | (6) | ¥5.0 billion (or $47.1 million) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.6 million and $0.7 million as of September 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY. |
| | (7) | ¥10.3 billion (or $96.9 million) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.1 million and $1.2 million as of September 30, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY. |
| | (8) | €650 million (or $714.4 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 $6.5 million as of September 30, 2019. These senior notes are denominated in Euro. |
| | (9) | 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 $4.1 million and $4.4 million as of September 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 $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 September 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 $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of September 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) | 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 4.7% and 5.0% and the weighted average years to maturity is 17.0 years and 17.8 years as of September 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. |
| | (13) | 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 4.3% and 4.6% as of September 30, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.3 years and 3.3 years as of September 30, 2019 and December 31, 2018, respectively. |
| | (14) | 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." |
| | (15) | During the three months ended September 30, 2019, the controlling financial interest in the CMBS vehicle was sold. CMBS debt obligations are carried at fair value and are classified as Level III within the fair value hierarchy as of December 31, 2018. See Note 5 "Fair Value Measurements." |
| | (16) | The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes. |
(17) 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.
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