SAN FRANCISCO, July 8, 2011 /PRNewswire/ -- KKR Financial
Holdings LLC (NYSE: KFN) ("KFN" or the "Company") today announced
that it has upsized KKR Financial CLO 2011-1, Ltd. ("CLO 2011-1")
to $600 million from $400 million. The increase in the transaction
size is a result of an amendment to the transaction whereby CLO
2011-1 is now able to borrow up to $450
million representing an increase of $150 million from what was previously available
under the securitization. In addition, the Company increased its
residual interest in the transaction from $100 million to $150
million through the acquisition of an additional
$50 million of subordinated notes
issued by CLO 2011-1. The cost of the financing remains three-month
LIBOR plus 1.35%.
Concurrent with the amendment to increase the size of CLO
2011-1, the transaction was amended to reduce the par value ratio
test (failure of which would cause up to 50% of all interest
collections otherwise payable to the Company to be diverted until
this test was brought into compliance) for CLO 2011-1 from 133.33%
to 120%.
CLO 2011-1 initially closed on March 31,
2011 as a privately negotiated financing transaction between
the Company and a third-party senior lender.
The Company's Chief Executive Officer, William C. Sonneborn, stated, "We are very
pleased that we were able to upsize CLO 2011-1 as it represents a
uniquely structured financing transaction through which we can
continue to grow our senior secured loan portfolio at attractive
terms with a partner."
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a specialty finance company with
expertise in a range of asset classes. KFN's core business strategy
is to leverage the proprietary resources of its manager with the
objective of generating both current income and capital
appreciation. KFN is externally managed by KKR Financial Advisors
LLC, a wholly-owned subsidiary of KKR Asset Management LLC, which
is a wholly-owned subsidiary of Kohlberg Kravis Roberts & Co.
L.P. KFN executes its core business strategy through its
majority-owned subsidiaries. Additional information regarding
KFN is available at http://www.kkr.com.
Investor Relations Contact:
Angela Yang
Kohlberg Kravis Roberts & Co.
Tel: +1 (415) 315-6567
investor-relations@kkr.com
Media Relations Contacts:
Kristi Huller
Kohlberg Kravis Roberts & Co.
Tel: + 1 (212) 750-8300
media@kkr.com
"Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995:
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are based on information
available to the Company as of the date of this press release and
actual results may differ. These forward-looking statements involve
known and unknown risks, uncertainties and other factors beyond the
Company's control. Any forward-looking statements speak only as of
the date of this press release and the Company expressly disclaims
any obligation to update or revise any of them to reflect actual
results, any changes in expectations or any change in events. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements. For
additional information concerning risks, uncertainties and other
factors that may cause actual results to differ from those
anticipated in the forward-looking statements, and risks to the
Company's business in general, please refer to the Company's SEC
filings, including its Annual Report on Form 10-K for the fiscal
year ended December 31, 2010, filed
with the SEC on February 28, 2011 and
its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2011, filed with the SEC on
May 2, 2011.
SOURCE KKR Financial Holdings LLC