KKR Financial Holdings LLC Announces Launch of $125 Million Offering of Convertible Senior Notes
January 11 2010 - 4:12PM
PR Newswire (US)
SAN FRANCISCO, Jan. 11 /PRNewswire-FirstCall/ -- KKR Financial
Holdings LLC (NYSE:KFN) (the "Company") today announced that it
intends to offer, subject to market and other considerations, $125
million aggregate principal amount of Convertible Senior Notes due
2017 (the "Notes") in an underwritten registered public offering.
In connection with this offering, the Company intends to grant the
underwriters an over-allotment option to purchase up to $18.75
million aggregate principal amount of additional Notes. The Notes
will bear interest at a fixed rate and will be convertible into
cash, the Company's common shares or a combination thereof at the
Company's election. The interest rate, conversion price and other
terms of the Notes will be determined by negotiations between the
Company and the underwriters. Citi, BofA Merrill Lynch and J.P.
Morgan are acting as joint book-runners for the offering. KKR
Capital Markets LLC is acting as a co-manager of the offering. The
Company intends to use substantially all of the net proceeds from
the offering of the Notes 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 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 http://www.sec.gov/. Alternatively, the preliminary
prospectus supplement (including the prospectus) may be obtained by
contacting Citi, Brooklyn Army Terminal, 140 58th Street, 8th
Floor, Brooklyn, NY 11220 or call (877) 858-5407, BofA Merrill
Lynch, 4 World Financial Center, New York, NY 10080, Attn:
Preliminary Prospectus Department or email or J.P. Morgan
Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY
11245, Attention: Prospectus Library. 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 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. Media Relations Contacts:
Peter McKillop or Kristi Huller Kohlberg Kravis Roberts & Co.
Tel: 212-750-8300 Investor Relations Contact: Laurie Poggi Kohlberg
Kravis Roberts & Co. Tel: 415-315-3718 "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 and the
anticipated use of proceeds therefrom. 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, filed with the SEC on the
date hereof, (ii) its Annual Report on Form 10-K for the fiscal
year ended December 31, 2008, filed with the SEC on March 2, 2009
and (iii) its Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2009, filed with the SEC on November 5,
2009. DATASOURCE: KKR Financial Holdings LLC CONTACT: Media
Relations, Peter McKillop or Kristi Huller, +1-212-750-8300, , or
Investor Relations, Laurie Poggi, +1-415-315-3718, all of Kohlberg
Kravis Roberts & Co. Web Site: http://www.kkrkfn.com/
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