SAN FRANCISCO, Nov. 7, 2011 /PRNewswire/ -- KKR Financial
Holdings LLC (NYSE: KFN) (the "Company") today announced pricing of
its public offering of Senior Notes due 2041 (the "Notes").
The offering is expected to close on November 15, 2011, subject to customary closing
conditions. The Notes are being offered in an underwritten
registered public offering. We intend to list the Notes on the New
York Stock Exchange under the symbol "KFH" and expect trading in
the Notes on the New York Stock Exchange to begin within 30 days
after the Notes are first issued.
Total aggregate gross proceeds from the offering are
approximately $225 million, exclusive
of any proceeds attributable to the underwriters' possible exercise
of their over-allotment option. In connection with this offering,
the Company has granted the underwriters an over-allotment option
to purchase up to $33.75 million
aggregate principal amount of additional Notes.
Interest on the Notes will be paid quarterly on February 15, May
15, August 15 and November 15 of each year, beginning February 15, 2012, at a rate of 8.375 percent per
year and the Notes will mature on November
15, 2041 unless earlier repurchased or redeemed.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS
Securities LLC and Wells Fargo Securities, LLC are acting as joint
book-running managers for the offering. KKR Capital Markets LLC and
RBC Capital Markets, LLC are acting as co-managers of the
offering.
The total net proceeds to the Company from the offering of the
Notes will be approximately $218
million, exclusive of any proceeds attributable to the
underwriters' possible exercise of their over-allotment option.
The Company intends to use a portion of the net proceeds to
repurchase or repay a portion of its existing senior indebtedness,
with the remaining proceeds to be used for general corporate
purposes.
The Company has filed a registration statement (including a
prospectus) and a prospectus supplement with the Securities and
Exchange Commission (the "SEC") for the offering of the Notes
described in this press release. Before you invest, you should read
the prospectus and prospectus supplement included in that
registration statement and other documents the Company has filed
with the SEC for more complete information about the Company and
the Notes. You may obtain these documents for free by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively, the
prospectus supplement (including the prospectus) may be obtained by
contacting Citigroup Global Markets Inc., Attention: Prospectus
Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor,
Brooklyn, NY 11220, telephone:
1-877-858-5407; Morgan Stanley & Co. LLC, 180 Varick Street,
New York, NY 10014, Attention:
Prospectus Department, telephone: 1-866-718-1649 or by emailing
prospectus@morganstanley.com; UBS Securities LLC, 299 Park Avenue,
New York, NY 10171, Attention:
Prospectus Specialist, telephone: 1-877-827-6444, ext. 561 3884 or
Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675,
Charlotte, North Carolina 28262,
Attention: Capital Markets Client Support, telephone:
1-800-326-5897 or by emailing cmclientsupport@wellsfargo.com.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes described herein, nor
shall there be any sale of these Notes in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction. The offering of these Notes will be
made only by means of the prospectus supplement and the related
prospectus. The Notes being offered have not been approved or
disapproved by any regulatory authority, nor has any such authority
passed upon the accuracy or adequacy of the registration statement,
the prospectus contained therein or the prospectus supplement.
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a specialty finance company that
invests in multiple asset classes. KKR Financial Holdings LLC 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.
Additional information regarding KFN is available at
http://www.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 include, but are not limited to, statements related to
the proposed offering of Notes, the anticipated use of proceeds
there from and the expected trading date of the Notes on the New
York Stock Exchange. These forward-looking statements involve known
and unknown risks, uncertainties and other factors discussed in the
Company's filings with the SEC. 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 (i) its prospectus
supplement, dated the date hereof, (ii) its Annual Report on Form
10-K for the fiscal year ended December 31,
2010, filed with the SEC on February
28, 2011 and (iii) its Quarterly Report on Form 10-Q for the
quarterly period ended September 30,
2011, filed with the SEC on November
3, 2011.
Investor Relations Contact:
Angela Yang
415-315-6567
investor-relations@kkr.com
Media Contact:
Kristi Huller
212-750-8300
media@kkr.com
SOURCE KKR Financial Holdings LLC