KKR presses on with IPO

Kohlberg Kravis Roberts is forging on with its IPO despite treacherous conditions in the credit markets. Yesterday, KKR filed an update to its initial public offering filing with the Securities and Exchange Commission; however, the firm notes that it’s facing new challenges since it initially filed on July 3. Risk factors now include “difficult marketing conditions” that can harm the business. “For example, the cost of financing leveraged buyout transactions by issuing high-yield debt securities in the public capital markets has recently increased significantly, ” said the filing. KKR also warned, “If conditions in the debt markets do not become more favorable to us in the near term, we may need to rely on financing commitments provided directly by investment banks or other sources.” KKR also said that the antitrust division of the Justice Department has requested documents and information relating to an investigation of private equity firms and that the firm said that it was cooperating with the DOJ’s investigations.