KKR Financial Holdings LLC Announces Completion of $270 Million Common Share Rights Offering
September 24 2007 - 4:55PM
PR Newswire (US)
SAN FRANCISCO, Sept. 24 /PRNewswire-FirstCall/ -- KKR Financial
Holdings LLC (NYSE:KFN) (the "Company") today announced the
completion of its previously announced $270 million common share
rights offering ("Rights Offering"). The maximum amount of the
Rights Offering, or $270 million, was purchased and was comprised
of approximately $213.4 million from existing shareholders and
approximately $56.6 million from certain principals of Kohlberg
Kravis Roberts & Co. L.P. pursuant to previously announced
backstop commitments related to the Rights Offering (the "Backstop
Sale"). The Rights Offering (including the Backstop Sale, which is
scheduled to close on or about October 2, 2007) will result in the
Company issuing approximately 18.75 million common shares at $14.40
per common share. Gross proceeds from the Rights Offering,
including the Backstop Sale, will total approximately $270 million
and will be used for general corporate purposes. As a result of the
consummation of the Rights Offering, as of September 24, 2007, the
Company had 111,316,698 common shares outstanding, which will
increase to 115,248,990 common shares outstanding following
completion of the Backstop Sale. As previously announced, the
Company completed a common share offering ("Common Share Offering")
totaling approximately $230.4 on August 21, 2007 in which the
Company issued 16 million common shares at $14.40 per common share.
In aggregate, the Rights Offering and Common Share Offering
resulted in the Company issuing approximately 34.75 million common
shares at $14.40 per common share and the transactions in aggregate
generated gross proceeds of approximately $500.4 million. Nino
Fanlo, the Company's Chief Executive Officer, stated, "We would
like to thank our shareholders for this demonstration of support
for the Company. We believe that raising $500.4 million strengthens
our balance sheet and positions the Company to opportunistically
take advantage of current market opportunities for corporate debt
investments." 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. 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.
CONTACT: Investors Laurie L. Poggi KKR Financial (415) 315-3718
Media Roanne Kulakoff/Joseph Kuo Kekst and Company (212)
521-4837/4863 DATASOURCE: KKR Financial Holdings LLC CONTACT:
Investors, Laurie L. Poggi of KKR Financial, +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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