KKR Financial Holdings LLC Declares Regular Cash Distribution and Reaches Agreement With Holders of Senior Notes Issued by KKR F
November 29 2009 - 4:00PM
PR Newswire (US)
SAN FRANCISCO, Nov. 29 /PRNewswire-FirstCall/ -- KKR Financial
Holdings LLC ("KFN" or the "Company") announced today that its
Board of Directors has declared a regular cash distribution of
$0.05 per common share. The cash distribution will be payable on
December 21, 2009 to holders of the Company's common shares of
record as of the close of business on December 7, 2009. "We
established clear objectives for KFN in 2009. One of those was to
put the Company in the position to begin to return some of our
profits to our shareholders through regular distributions. With
this action by our Board of Directors, we are restarting a regular
cash distribution to shareholders. We are continuing to look
forward and evaluate opportunities to increase shareholder value,"
said Bill Sonneborn, Chief Executive Officer. The Company also
announced today that it has reached an agreement with a majority of
the holders of the controlling class of notes of KKR Financial CLO
2005-2, Ltd. ("CLO 2005-2"), pursuant to which the note holders
have agreed, subject to the terms and conditions of the agreement,
not to challenge the July 2009 surrender for cancellation, without
consideration, of $64 million of mezzanine notes issued to the
Company by CLO 2005-2. In exchange, the Company has agreed to
certain arrangements, including, among other things, to refrain
from undertaking a comparable surrender for cancellation of any
other mezzanine notes or junior notes issued to it by CLO 2005-2.
In addition, the Company has agreed with these note holders that,
for so long as no challenge is brought to the Company's prior
surrender of notes in any of its collateralized loan obligation
transactions, the Company will not undertake a comparable surrender
for cancellation, without consideration, of any mezzanine notes or
junior notes issued to it by KKR Financial CLO 2005-1, Ltd., KKR
Financial CLO 2006-1, Ltd., KKR Financial CLO 2007-1, Ltd. or KKR
Financial 2007-A, Ltd. About KKR Financial Holdings LLC KKR
Financial Holdings LLC is a publicly traded 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 Kohlberg Kravis Roberts & Co. (Fixed
Income) LLC, which is a wholly-owned subsidiary of Kohlberg Kravis
Roberts & Co. L.P. Additional information regarding KKR
Financial Holdings LLC is available at http://www.kkr.com/.
Cautionary Note Regarding Forward-Looking Statements 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 Company's ability to make future cash
distributions to the holders of its common shares. These
forward-looking statements are based on information available to
the Company as of the date of this Current Report. Factors that
could cause actual results to differ materially from the Company's
expectations include completion of pending investments, continued
ability to source new investments, the availability and cost of
capital for future investments, competition within the specialty
finance sector, economic conditions, credit loss experience,
availability of financing, maintenance of sufficient liquidity and
other risks disclosed from time to time in the Company's filings
with the Securities and Exchange Commission. These forward-looking
statements should not be relied upon as representing the Company's
views as of any subsequent date and the Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made. Investor Relations
Contact: Laurie Poggi Kohlberg Kravis Roberts & Co. Tel:
415-315-3718 Media Relations Contacts: Peter McKillop or Kristi
Huller Kohlberg Kravis Roberts & Co. Tel: 212-750-8300
DATASOURCE: KKR Financial Holdings LLC CONTACT: Investor Relations,
Laurie Poggi, +1-415-315-3718, or Media Relations, Peter McKillop
or Kristi Huller, +1-212-750-8300, , all of Kohlberg Kravis Roberts
& Co. for KKR Financial Holdings LLC Web Site:
http://www.kkrkfn.com/
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