KFN Kkr Financial Holdings Llc

SAN FRANCISCO, Feb. 20 /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC (NYSE:KFN) today provided additional commentary on its SEC filing yesterday updating shareholders on the fact that it had entered into an Extension Amendment Agreement to allow for further restructuring discussions with the holders of non-recourse secured liquidity notes (commercial paper) issued by two asset-backed secured liquidity note conduit facilities (the "Facilities"). A spokesperson for KKR Financial said: "We have been in discussions with the noteholders for the last two weeks to determine if there is a path to a more definitive restructuring that benefits all parties. The discussions have been productive and we are working diligently toward a solution. As a result of those conversations, the noteholders have agreed to extend the maturity of the February 15 notes by two weeks so we can continue our negotiations." "We will continue to work with the noteholders to determine if there is a further restructuring that will protect the noteholders and provide KFN shareholders the ability to recover some of the equity that was previously written off. If we cannot come to agreement with the noteholders, they will take the underlying collateral as contemplated by the October restructuring. It is worth noting that the collateral in the portfolio has continued to perform well since October." As previously announced, the Company recorded a charge in 2007 for discontinued operations of approximately $243.7 million which included its entire investment in the Facilities. As of December 31, 2007, the Company's exposure to the residential mortgage market consists of approximately $337.6 million of RMBS held outside of the Facilities. The $337.6 million of RMBS held outside of the Facilities consists of $287.8 million of RMBS rated investment grade or higher and $49.8 million of RMBS rated below investment grade. The Company's exposure to the residential mortgage market does not include any assets that are collateralized or backed by subprime residential mortgage loans. In addition, the Company does not have any off-balance sheet exposure to residential mortgage assets as the Company does not hold any investments in off-balance sheet structures such as structured investment vehicles or collateralized debt obligations. KKR Financial Holdings LLC is a publicly owned specialty finance company that invests in multiple asset classes. KKR Financial Holdings LLC is externally managed by KKR Financial Advisors LLC. KKR Financial Advisors LLC is an affiliate of Kohlberg Kravis Roberts & Co. L.P. Additional information regarding KKR Financial Holdings LLC is available at http://www.kkrkfn.com/. 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 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/

Copyright