KKR Financial Holdings LLC Announces Sale of Private Equity Investments
September 13 2007 - 4:18PM
PR Newswire (US)
SAN FRANCISCO, Sept. 13 /PRNewswire-FirstCall/ -- KKR Financial
Holdings LLC (NYSE:KFN) ("KFN" or the "Company") announced today
that it has agreed to sell seven of its private equity investments
to two institutional investors. In connection with the sales, the
Company will receive net cash proceeds of approximately $191
million and will record a net gain on the sales of approximately
$51 million. Prior to the sales, the Company had received aggregate
cash distributions totaling approximately $24 million in connection
with its ownership of three of the private equity investments. In
each case, the cash distribution received was applied to reduce the
cost basis of the private equity investment. The Company estimates
that it will earn a net internal rate of return of approximately
19.3% on the sales. The sale of one of the private equity
investments closed on September 6, 2007 and the sale of the other
six private equity investments is expected to close during the
fourth quarter of 2007. The obligation of the buyer to close on the
sale of the other six private equity investments is subject to
customary closing conditions. The net sales proceeds will be used
for general corporate purposes. After the sales described above,
the Company's remaining private equity portfolio consists of four
investments with an aggregate cost of approximately $20 million and
an aggregate fair market value that the Company estimates to be
greater than $20 million. About KKR Financial Holdings LLC KKR
Financial Holdings LLC is a specialty finance company that uses
leverage with the objective of generating competitive risk-adjusted
returns. The Company seeks to achieve its investment objective by
investing in (i) corporate loans and debt securities, (ii)
marketable equity securities, and (iii) non-marketable equity
securities. The Company also makes opportunistic investments in
other asset classes from time to time, including investments in
residential and commercial mortgage loans and securities. KKR
Financial Advisors LLC manages the Company pursuant to a management
agreement. KKR Financial Holdings LLC and KKR Financial Advisors
LLC are affiliates of Kohlberg Kravis Roberts & Co. L.P.
Statements in this press release that are not strictly historical
are "forward-looking" statements. Forward-looking statements
involve known and unknown risks, which may cause the Company's
actual future results to differ materially from expected results.
These risks include, among others, general economic conditions, the
availability, terms and deployment of capital to finance planned
growth, risks associated with investing in mortgage-related assets,
the Company's limited liability company and organization structure
and the regulatory environment in which its business operates, as
described in the Company's filings with the Securities and Exchange
Commission. Consequently, such forward-looking statements should be
regarded solely as reflections of the Company's current operating
plans and estimates. Actual operating results may differ materially
from what is expressed or forecast in this press release. The
Company undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date these statements
were made. Investor Contact Media Contact Laurie Poggi Roanne
Kulakoff and Joseph Kuo KKR Financial LLC Kekst and Company
415-315-3718 212-521-4837 and 212-521-4863 DATASOURCE: KKR
Financial Holdings LLC CONTACT: Investors, Laurie Poggi of KKR
Financial Holdings LLC, +1-415-315-3718; or Media, Roanne Kulakoff,
+1-212-521-4837, or Joseph Kuo, +1-212-521-4863, both of Kekst and
Company, for KKR Financial Holdings LLC Web site:
http://www.kkrkfn.com/
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