0001418812-17-000079.txt : 20170821
0001418812-17-000079.hdr.sgml : 20170821
20170821172821
ACCESSION NUMBER: 0001418812-17-000079
CONFORMED SUBMISSION TYPE: SC 13D
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20170821
DATE AS OF CHANGE: 20170821
SUBJECT COMPANY:
COMPANY DATA:
COMPANY CONFORMED NAME: KKR & Co. L.P.
CENTRAL INDEX KEY: 0001404912
STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282]
IRS NUMBER: 260426107
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D
SEC ACT: 1934 Act
SEC FILE NUMBER: 005-85606
FILM NUMBER: 171043751
BUSINESS ADDRESS:
STREET 1: 9 WEST 57TH STREET
STREET 2: SUITE 4200
CITY: NEW YORK
STATE: NY
ZIP: 10019
BUSINESS PHONE: 212-750-8300
MAIL ADDRESS:
STREET 1: 9 WEST 57TH STREET
STREET 2: SUITE 4200
CITY: NEW YORK
STATE: NY
ZIP: 10019
FILED BY:
COMPANY DATA:
COMPANY CONFORMED NAME: VA Partners I, LLC
CENTRAL INDEX KEY: 0001418812
IRS NUMBER: 421745536
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D
BUSINESS ADDRESS:
STREET 1: ONE LETTERMAN DRIVE
STREET 2: BUILDING D, 4TH FLOOR
CITY: SAN FRANCISCO
STATE: CA
ZIP: 94129
BUSINESS PHONE: 415-362-3700
MAIL ADDRESS:
STREET 1: ONE LETTERMAN DRIVE
STREET 2: BUILDING D, 4TH FLOOR
CITY: SAN FRANCISCO
STATE: CA
ZIP: 94129
SC 13D
1
kkr13d082117.txt
SC 13D
=============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934
KKR & Co. L.P.
------------------------------------------------
(Name of Issuer)
Common Units
------------------------------------------------
(Title of Class of Securities)
48248M102
------------------------------------------------
(CUSIP Number)
Allison Bennington, Esq.
ValueAct Capital
One Letterman Drive, Building D, Fourth Floor
San Francisco, CA 94129
(415) 362-3700
------------------------------------------------
(Name, address and telephone number of Person
Authorized to Receive Notices and Communications)
August 10, 2017
------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
This information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
=============================================================================
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 2 of 16
-----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Capital MFB Holdings, L.P.
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS (See Instructions)*
WC*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
-----------------------------------------------------------------------------
*See Item 3
**See Item 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 3 of 16
-----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Capital Master Fund, L.P.
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS (See Instructions)*
WC*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
-----------------------------------------------------------------------------
*See Item 3
**See Item 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 4 of 16
----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
VA Partners I, LLC
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
00 (LLC)
-----------------------------------------------------------------------------
*See Item 3
**See Item 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 5 of 16
----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Capital Management, L.P.
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
-----------------------------------------------------------------------------
*See Item 3
**See Item 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 6 of 16
----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Capital Management, LLC
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
00 (LLC)
-----------------------------------------------------------------------------
*See Item 3
**See Item 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 7 of 16
-----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Holdings, L.P.
---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
---------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
-----------------------------------------------------------------------------
*See Item 3
**See Items 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 8 of 16
-----------------------------------------------------------------------------
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. INDENTIFICATION NO. OF ABOVE
PERSON (entities only)
ValueAct Holdings GP, LLC
---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00*
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 28,555,916**
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
28,555,916**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
28,555,916**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
00 (LLC)
-----------------------------------------------------------------------------
*See Item 3
**See Items 2 and 5
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 9 of 16
-----------------------------------------------------------------------------
Item 1. Security and Issuer
This Schedule 13D relates to the common units (the "Common Units") of
KKR & Co. L.P., a Delaware Limited Partnership (the "Issuer"). The address
of the principal executive offices of the Issuer is 9 West 57th?Street,
Suite?4200, New York, New York 10019.
Item 2. Identity and Background
This statement is filed jointly by (a) ValueAct Capital MFB Holdings,
L.P. ("ValueAct MFB"), (b) ValueAct Capital Master Fund, L.P. ("ValueAct
Master Fund"), (c) VA Partners I, LLC ("VA Partners I"), (d) ValueAct Capital
Management, L.P. ("ValueAct Management L.P."), (e) ValueAct Capital
Management, LLC ("ValueAct Management LLC"), (f) ValueAct Holdings, L.P.
("ValueAct Holdings") and (g) ValueAct Holdings GP, LLC ("ValueAct Holdings
GP")(collectively, the "Reporting Persons").
ValueAct MFB is a limited partnership organized under the laws of the
British Virgin Islands. ValueAct Master Fund is a limited partnership
organized under the laws of the British Virgin Islands. VA Partners I is a
Delaware limited liability company, the principal business of which is to
serve as the General Partner to ValueAct Master Fund. ValueAct Management
L.P. is a Delaware limited partnership which renders management services to
ValueAct Master Fund. ValueAct Management LLC is a Delaware limited
liability company, the principal business of which is to serve as the General
Partner to ValueAct Management L.P. ValueAct Holdings is a Delaware limited
partnership and is the sole owner of the limited partnership interests of
ValueAct Management L.P. and the membership interests of ValueAct Management
LLC and is the majority owner of the membership interests of VA Partners I.
ValueAct Holdings GP is a Delaware limited liability company, the principal
business of which is to serve as the General Partner to ValueAct Holdings.
The address of the principal business and principal office of each of
the Reporting Persons is One Letterman Drive, Building D, Fourth Floor, San
Francisco, CA 94129.
(d) and (e). None of the entities or persons identified in this Item 2
has during the past five years been convicted of any criminal proceeding
(excluding traffic violations or similar misdemeanors), nor been a party to a
civil proceeding of a judicial or administrative body of competent judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration
The source of funds used for the purchase of the Common Units and to
enter into the cash-settled swaps (as discussed in Item 6 below) was the
working capital of ValueAct Master Fund. The aggregate purchase price of the
Common Units is approximately $540,433,803.20. The aggregate purchase price
of the cash-settled swaps is approximately $308,017,590.52.
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 10 of 16
-----------------------------------------------------------------------------
Item 4. Purpose of Transaction
The responses to Items 3, 5 and 6 of this Schedule 13D are incorporated
herein by reference.
The Reporting Persons have acquired securities of the Issuer for
investment purposes. The Reporting Persons believe the securities of the
Issuer are undervalued and represent an attractive investment opportunity.
The Reporting Persons have had and anticipate having further
discussions with officers of the Issuer and officers and directors of KKR
Management LLC, the Issuer's managing partner (the "Managing Partner"), in
connection with the Reporting Persons' investment in the Issuer. The topics
of these conversations will cover a range of issues, including those relating
to the business of the Issuer, management, operations, capital allocation,
asset allocation, capital or corporate structure, distribution policy,
financial condition, mergers and acquisitions strategy, overall business
strategy, executive compensation, and corporate governance. The Reporting
Persons may also have similar conversations with other stockholders or other
interested parties, such as industry analysts, existing or potential
strategic partners or competitors, investment professionals, and other
investors. The Reporting Persons may at any time reconsider and change their
intentions relating to the foregoing. The Reporting Persons may also take
one or more of the actions described in subsections (a) through (j) of Item 4
of Schedule 13D and may discuss such actions with the Issuer's management and
the management and board of directors of the Managing Partner, other holders
of the Issuer's Common Units, and other interested parties, such as those set
out above.
???? The Reporting Persons intend to review their investments in the Issuer
on a continuing basis. Depending on various factors, including, without
limitation, the Issuer's financial position and strategic direction, the
outcome of the discussions and actions referenced above, actions taken by the
Managing Partner's board of directors, price levels of the Common Units,
other investment opportunities available to the Reporting Persons, rights
afforded to the Common Units pursuant to the Issuer?s limited partnership
agreement and other relevant documents, tax implications, conditions in the
securities market and general economic and industry conditions, the Reporting
Persons may in the future take actions with respect to its investment
position in the Issuer as it deems appropriate, including, without
limitation, purchasing additional Common Units or other instruments that are
based upon or relate to the value of the Common Units or the Issuer in the
open market or otherwise, selling some of all of its interests held by the
Reporting Persons, and/or engaging in hedging or similar transactions with
respect to the Common Units.
Item 5. Interest in Securities of the Issuer
The responses to Items 3, 4 and 6 of this Schedule 13D are
incorporated herein by reference.
(a) and (b). Set forth below is the beneficial ownership of Common
Units of the Issuer for each person named in Item 2. Common units reported
as beneficially owned by ValueAct MFB are also reported as beneficially owned
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 11 of 16
-----------------------------------------------------------------------------
by (i) ValueAct Master Fund as the sole owner of the limited partnership
interests of ValueAct MFB, (ii) ValueAct Management L.P. as the manager of
each such investment partnership,(iii) ValueAct Management LLC, as General
Partner of ValueAct Management L.P., (iv) ValueAct Holdings, as the sole
owner of the limited partnership interests of ValueAct Management L.P. and
the membership interests of ValueAct Management LLC and as the majority
owner of the membership interests of VA Partners I and (v) ValueAct Holdings
GP, as General Partner of ValueAct Holdings. Common Units reported as
beneficially owned by ValueAct MFB are also reported as beneficially owned by
VA Partners I, as General Partner of ValueAct MFB. VA Partners I, ValueAct
Master Fund, ValueAct Management L.P., ValueAct Management LLC, ValueAct
Holdings and ValueAct Holdings GP also, directly or indirectly, may own
interests in one or more than one of the partnerships from time to time.
Unless otherwise indicated below, by reason of such relationship ValueAct MFB
is reported as having shared power to vote or to direct the vote, and shared
power to dispose or direct the disposition of, such shares of Common Units,
with VA Partners I, ValueAct Master Fund, ValueAct Management L.P., ValueAct
Management LLC, ValueAct Holdings and ValueAct Holdings GP. Information
regarding each of the Reporting Persons is set forth in Item 2 of this
Schedule 13D and is expressly incorporated by reference herein.
As of the date hereof, ValueAct MFB is the beneficial owner of
28,555,916 Common Units, representing approximately 6.1% of the Issuer's
outstanding Common Units. The number of Common Units set forth above excludes
cash-settled swaps disclosed in Item 6. All percentages set forth in this
Schedule 13D are based upon the Issuer's reported 469,983,183 outstanding
Common Units as reported in the Issuer's Form 10-Q filed on August 4, 2017
for the quarterly period ended June 30, 2017.
(c) The following table sets forth all transactions with respect to
the Common Units effected in the previous sixty days by the Reporting
Persons, inclusive of any transactions effected through 4:00 p.m., New York
City time, on August 21, 2017. Except as otherwise noted below, all such
transactions were purchases (or sales) of Common Units effected in the open
market.
Reporting Person Trade Date Buy/Sell Bought(Sold) Price/Share
---------------- ---------- -------- -------- -----------
ValueAct MFB 06/22/2017 Buy 500,000 18.62
ValueAct MFB 06/23/2017 Buy 500,000 18.67
ValueAct MFB 06/26/2017 Buy 500,000 18.35
ValueAct MFB 06/27/2017 Buy 500,000 18.44
ValueAct MFB 06/28/2017 Buy 500,000 18.48
ValueAct MFB 06/29/2017 Buy 500,000 18.42
ValueAct MFB 06/30/2017 Buy 500,000 18.61
ValueAct MFB 07/03/2017 Buy 200,000 18.73
ValueAct MFB 07/05/2017 Buy 500,000 18.32
ValueAct MFB 07/06/2017 Buy 500,000 18.32
ValueAct MFB 07/07/2017 Buy 500,000 18.40
ValueAct MFB 07/10/2017 Buy 500,000 18.84
ValueAct MFB 07/11/2017 Buy 500,000 18.93
ValueAct MFB 07/12/2017 Buy 500,000 19.01
ValueAct MFB 07/12/2017 Buy 141,800 19.00
ValueAct MFB 07/13/2017 Buy 500,000 19.22
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 12 of 16
-----------------------------------------------------------------------------
ValueAct MFB 07/14/2017 Buy 500,000 19.30
ValueAct MFB 07/14/2017 Buy 75,000 19.24
ValueAct MFB 07/17/2017 Buy 500,000 19.47
ValueAct MFB 07/17/2017 Buy 200,000 19.47
ValueAct MFB 07/18/2017 Buy 500,000 19.13
ValueAct MFB 07/18/2017 Buy 200,000 19.11
ValueAct MFB 07/19/2017 Buy 550,000 19.33
ValueAct MFB 07/19/2017 Buy 200,000 19.33
ValueAct MFB 07/19/2017 Buy 200,000 19.30
ValueAct MFB 07/20/2017 Buy 550,000 19.48
ValueAct MFB 07/20/2017 Buy 200,000 19.47
ValueAct MFB 07/20/2017 Buy 116,000 19.50
ValueAct MFB 07/21/2017 Buy 200,000 19.46
ValueAct MFB 07/21/2017 Buy 550,000 19.47
ValueAct MFB 07/24/2017 Buy 550,000 19.38
ValueAct MFB 07/24/2017 Buy 200,000 19.38
ValueAct MFB 07/25/2017 Buy 550,000 19.48
ValueAct MFB 07/25/2017 Buy 200,000 19.48
ValueAct MFB 07/26/2017 Buy 550,000 19.47
ValueAct MFB 07/26/2017 Buy 200,000 19.46
ValueAct MFB 07/27/2017 Buy 550,000 19.72
ValueAct MFB 07/27/2017 Buy 300,000 19.71
ValueAct MFB 07/27/2017 Buy 300,000 19.73
ValueAct MFB 07/27/2017 Buy 300,000 19.53
ValueAct MFB 07/28/2017 Buy 550,000 19.20
ValueAct MFB 07/28/2017 Buy 50,000 19.16
ValueAct MFB 07/28/2017 Buy 150,000 19.18
ValueAct MFB 07/31/2017 Buy 550,000 19.46
ValueAct MFB 07/31/2017 Buy 200,000 19.46
ValueAct MFB 08/01/2017 Buy 550,000 19.61
ValueAct MFB 08/01/2017 Buy 167,200 19.48
ValueAct MFB 08/02/2017 Buy 550,000 19.45
ValueAct MFB 08/02/2017 Buy 200,000 19.43
ValueAct MFB 08/02/2017 Buy 1,300,000 19.48
ValueAct MFB 08/03/2017 Buy 550,000 19.49
ValueAct MFB 08/03/2017 Buy 200,000 19.48
ValueAct MFB 08/04/2017 Buy 550,000 19.58
ValueAct MFB 08/04/2017 Buy 35,000 19.50
ValueAct MFB 08/07/2017 Buy 550,000 19.54
ValueAct MFB 08/07/2017 Buy 200,000 19.50
ValueAct MFB 08/08/2017 Buy 20,916 19.50
ValueAct MFB 08/10/2017 Buy 550,000 18.69
ValueAct MFB 08/11/2017 Buy 650,000 18.36
ValueAct MFB 08/14/2017 Buy 650,000 18.73
ValueAct MFB 08/15/2017 Buy 650,000 18.44
ValueAct MFB 08/16/2017 Buy 650,000 18.50
ValueAct MFB 08/17/2017 Buy 650,000 18.21
ValueAct MFB 08/18/2017 Buy 650,000 18.25
ValueAct MFB 08/21/2017 Buy 650,000 18.17
(d) and (e) Not applicable.
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 13 of 16
-----------------------------------------------------------------------------
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer
The responses to Items 3, 4 and 5 of this Schedule 13D are incorporated
herein by reference.
ValueAct Master Fund has entered into notional principal amount
derivative agreements in the form of cash-settled swaps with respect to
17,000,000 Common Units of the Issuer. The swaps provide ValueAct Capital
Master Fund with economic results that are comparable to the economic results
of ownership of the Common Units, whereby under the terms of the swaps, (i)
ValueAct Master Fund will be obligated to pay to the counterparty any
negative price performance of the referenced notional number of Common Units,
plus interest set forth in the applicable agreement, and (ii) the
counterparty will be obligated to pay ValueAct Master Fund any positive price
performance of the referenced notional number of Common Units. The swaps do
not give ValueAct Master Fund, or any of the other Reporting Persons, direct
or indirect voting, investment or dispositive control over any securities of
the Issuer and do not require the counterparty thereto to acquire, hold, vote
or dispose of any securities of the Issuer. Accordingly, the Reporting
Persons disclaim any beneficial ownership of any Common Units that may be
referenced in the swap agreements or Common Units or other securities or
financial instruments that may be held from time to time by any counterparty
to the agreements. The counterparty to the derivative agreements is an
unaffiliated third party financial institution.
On August 21, 2017 the Reporting Persons entered into a Joint Filing
Agreement in which the parties agreed to the joint filing on behalf of each
of them of statements on Schedule 13D with respect to the securities of the
Issuer to the extent required by applicable law. The Joint Filing Agreement
is attached as Exhibit 1 hereto and is incorporated herein by reference.
Other than as described elsewhere in this Schedule 13D, the Reporting
Persons have no understandings, arrangements, relationships or contracts
relating to the Issuer's Common Units which are required to be described
hereunder.
Item 7. Material to Be Filed as Exhibits
(1) Joint Filing Agreement.
SIGNATURE
After reasonable inquiry and to the best of his knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears
below on this Schedule 13D hereby constitutes and appoints Jeffrey W. Ubben,
Bradley E. Singer, G. Mason Morfit and Allison Bennington, and each of
them, with full power to act without the other, his or its true and lawful
attorney-in-fact and agent, with full power of substitution and
resubstitution, for him or it and in his or its name, place and stead, in any
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 14 of 16
-----------------------------------------------------------------------------
and all capacities (until revoked in writing) to sign any and all amendments
to this Schedule 13D, and to file the same, with all exhibits thereto and
other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and thing
requisite and necessary fully to all intents and purposes as he or it might
or could do in person, thereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their or his substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
ValueAct Capital MFB Holdings, L.P., by
VA Partners I, LLC, its General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Capital Master Fund, L.P., by
VA Partners I, LLC, its General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
VA Partners I, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Capital Management, L.P., by
ValueAct Capital Management, LLC its
General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Capital Management, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 15 of 16
-----------------------------------------------------------------------------
ValueAct Holdings, L.P., by
ValueAct Holdings GP, LLC, its General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Holdings GP, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
Exhibit 1
JOINT FILING UNDERTAKING
The undersigned parties hereby agree that the Schedule 13D filed herewith
(and any amendments thereto) relating to the Common Units of the Issuer, is
being filed jointly on behalf of each of them with the Securities and
Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act
of 1934, as amended.
ValueAct Capital MFB Holdings, L.P., by
VA Partners I, LLC, its General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Capital Master Fund, L.P., by
VA Partners I, LLC, its General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
VA Partners I, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Capital Management, L.P., by
ValueAct Capital Management, LLC its
General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
SCHEDULE 13D
-------------------------- -------------------------
CUSIP NO. 48248M102 Page 16 of 16
-----------------------------------------------------------------------------
ValueAct Capital Management, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Holdings, L.P., by
ValueAct Holdings GP, LLC, its
General Partner
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer
ValueAct Holdings GP, LLC
By: /s/ Bradley E. Singer
--------------------------------------
Dated: August 21, 2017 Bradley E. Singer, Chief Operating Officer