KKR Completes $2.6 Billion Mandatory Convertible Preferred Stock Offering
03.10.25
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Simpson Thacher represented KKR & Co. Inc. (NYSE: KKR) in connection with the registered offering of 51,750,000 shares of KKR’s 6.25% Series D Mandatory Convertible Preferred Stock, inclusive of shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. With gross proceeds of approximately $2.6 billion, the offering marked the largest U.S. equity-linked transaction so far in 2025, the largest ever public structured equity raise by a sponsor, and the largest mandatory convertible in the financial sector since 2009. KKR intends to use the net proceeds from the offering for the acquisition of additional equity interests in core private equity portfolio companies reported in its Strategic Holdings segment and for other general corporate purposes.
The Simpson Thacher team included Joe Kaufman, Sunny Cheong, Ben Pittenger, Cara Capoccitti and Cindy Yao (Capital Markets); Marcy Geller, Andrew Purcell and Edward Grais (Tax); and Tristan Brown, Erica Rozow and George Gerstein (Executive Compensation and Employee Benefits). Anna Jarman and Sophie Sujin Kim also provided valuable assistance.