SAN FRANCISCO, Sept. 30, 2013 /PRNewswire/ -- KKR Financial
Holdings LLC (NYSE:KFN) (the "Company") today announced that it has
added $300 million to the total
facility size of KKR Financial CLO 2011-1, Ltd. ("CLO
2011-1"). The increase results from an amendment to the
transaction whereby CLO 2011-1 may now borrow up to an incremental
$225 million to purchase senior
secured corporate loans. In connection with the upsize, the
Company increased its residual interest in the transaction through
the acquisition of an additional $75
million of subordinated notes issued by CLO 2011-1.
The cost of the financing remains three-month LIBOR plus
1.35%.
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 transaction was
previously upsized on July 6,
2011.
"This transaction represents the continuation of a creative and
successful partnership," said Craig J.
Farr, the Company's Chief Executive Officer. "It provides us
with a highly attractive source of financing for loan collateral in
an opportunistic structure that has generated approximately 15%
annualized cash returns for KFN's shareholders over the last two
years."
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 executes its core business strategy through its
majority-owned subsidiaries. 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. Additional information regarding KFN
is available at http://www.kkr.com.
Investor Relations Contact:
Pam Testani
Kohlberg Kravis Roberts & Co.
Tel: +1 (415) 315-6597
investor-relations@kkr.com
Media Contact:
Kristi Huller
Kohlberg Kravis Roberts & Co.
Tel: +1 (212) 750-8300
media@kkr.com
SOURCE KKR Financial Holdings LLC