KFN Kkr Financial Holdings Llc

KKR Financial Corp. Announces Exercise of Over-Allotment Option SAN FRANCISCO, June 28 /PRNewswire-FirstCall/ -- KKR Financial Corp. (NYSE:KFN) announced today that the underwriters of its recent initial public offering have fully exercised the over-allotment option to purchase 4,166,666 shares of common stock at the public offering price of $24.00 per share. As a result of the exercise, the Company will receive additional gross proceeds of $100 million for total gross proceeds of $900 million related to the initial public offering. The Company will receive net proceeds, after underwriting discounts and commissions, of approximately $94.7 million related to the over allotment, which will result in total net proceeds of the initial public offering of approximately $852.1 million. The closing of the over-allotment option is expected to occur tomorrow, June 29, 2005, and is subject to customary closing conditions. The offering was made through an underwriting syndicate including Citigroup Global Markets Inc., Bear Stearns & Co., Inc., Credit Suisse First Boston LLC, Lehman Brothers Inc., J.P. Morgan Securities Inc., and Friedman, Billings, Ramsey, & Co., Inc. A registration statement relating to shares of common stock of KKR Financial has been declared effective by the Securities and Exchange Commission. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A final prospectus of the offering may be obtained from Citigroup Global Markets Inc., Prospectus Department, Brooklyn Army Terminal, 8th Floor, 140 58th Street, Brooklyn, NY 11220, (Tel: 718-765-6732). KKR Financial Corp., an affiliate of Kohlberg Kravis Roberts & Co. L.P., is a diversified specialty finance company that invests across multiple asset classes, including residential mortgage loans and mortgage-backed securities, corporate loans and debt securities, commercial real estate loans and debt securities, and asset-backed securities. Founded in July 2004, KKR Financial has $7 billion in assets. CONTACT: Investors Laurie Poggi KKR Financial 415-315-3718 Media Roanne Kulakoff/Molly Morse Kekst and Company 212-521-4837/4826 DATASOURCE: KKR Financial Corp. CONTACT: investors, Laurie Poggi of KKR Financial Corp., +1-415-315-3718, or media, Roanne Kulakoff, +1-212-521-4837, or Molly Morse, +1-212-521-4826, both of Kekst and Company, for KKR Financial Corp.

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