SAN FRANCISCO, May 3 /PRNewswire-FirstCall/ -- KKR Financial
Holdings LLC (NYSE: KFN) (the "Company") today announced that the
Company and certain of its subsidiaries entered into a credit
agreement with Citibank, N.A., Bank of America, N.A., Deutsche Bank
AG New York Branch and Morgan Stanley, N.A., for a new four-year
$210 million asset-based revolving
credit facility (the "Facility"). The Facility replaces the
Company's $150 million senior secured
credit facility (the "Prior Facility") that was due to mature in
November 2011. The material
terms of the Facility are outlined in a Form 8-K filed today with
the Securities and Exchange Commission.
Highlights of the Facility are as follows:
- The Facility is $210 million and
provides for the ability to obtain additional commitments to
increase the total committed amount to up to $600 million.
- The Facility matures in May 2014
as compared to a November 2011
maturity of the Prior Facility.
- The Facility bears interest at LIBOR plus 3.25% as compared to
LIBOR plus 4.00% of the Prior Facility.
- The Facility provides the Company with the ability to pay cash
distributions to shareholders of up 65% of estimated taxable income
as compared to a restriction of paying distributions in excess of
50% of estimated taxable income in the Prior Facility.
The Company's Chief Executive Officer, William C. Sonneborn, commented, "We are pleased
with the completion of a new credit agreement which lowers our cost
of capital, supports our business strategy and provides
significantly increased flexibility in making distributions to our
shareholders."
Initial borrowings under the Facility are subject to, among
other things, the substantially concurrent repayment by the Company
of all amounts due and owing under the Prior Facility and such
facility's effective termination. The Facility also contains
covenants that require the Company to satisfy a net worth financial
test and maintain certain ratios relating to collateral coverage
and leverage. In addition, the Facility contains customary negative
covenants applicable to the Company and its subsidiaries, including
negative covenants that restrict the ability of such entities to,
among other things, (i) incur additional indebtedness, (ii) allow
certain liens to attach to such entities' assets, and (iii) pay
dividends or make certain other restricted payments.
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a publicly traded specialty
finance company with expertise in a range of asset classes. KKR
Financial Holdings LLC is externally managed by KKR Financial
Advisors LLC, a wholly-owned subsidiary of Kohlberg Kravis Roberts
& Co. (Fixed Income) LLC, which is a wholly-owned subsidiary of
Kohlberg Kravis Roberts & Co. L.P. KKR Financial Holdings
LLC executes its core business strategy through majority-owned
subsidiaries.
Media Relations
Contacts:
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Peter McKillop or
Kristi Huller
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Kohlberg Kravis
Roberts & Co.
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Tel:
212-750-8300
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media@kkr.com
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Investor Relations
Contact:
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Laurie
Poggi
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Kohlberg Kravis
Roberts & Co.
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Tel:
415-315-3718
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SOURCE KKR Financial Holdings LLC