SAN FRANCISCO, March 13, 2012 /PRNewswire/ -- KKR Financial
Holdings LLC (NYSE: KFN) (the "Company") today announced pricing of
its public offering of Senior Notes due 2042 (the "Notes").
The offering is expected to close on March
20, 2012, subject to customary closing conditions. The
Notes are being offered in an underwritten registered public
offering. The Company intends to apply to list the Notes on the New
York Stock Exchange under the symbol "KFI." If the application is
approved, the Company expects 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
$100 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 $15 million aggregate
principal amount of additional Notes.
The net proceeds to the Company from the offering of the Notes
will be approximately $96.4 million,
after deducting the underwriting discount and estimated offering
expenses payable by the Company, exclusive of any proceeds
attributable to the underwriters' possible exercise of their
over-allotment option. The Company intends to use the net
proceeds for general corporate purposes.
Interest on the Notes will be paid quarterly on March 20, June 20,
September 20 and December 20 of each year, beginning June 20, 2012, at a rate of 7.500 percent per
year and the Notes will mature on March 20,
2042 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 for the
offering.
The Company has filed a registration statement (including a
prospectus) and a preliminary 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 preliminary 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 preliminary prospectus supplement and final prospectus
supplement, when available (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. 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.
"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
therefrom 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 preliminary
prospectus supplement, dated the date hereof and (ii) its Annual
Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on
February 28, 2012.
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