KKR Financial Holdings LLC Announces New $150 Million Revolving Credit Facility

    KKR Financial Holdings LLC Announces New $150 Million Revolving Credit

PR Newswire

SAN FRANCISCO, Dec. 5, 2012

SAN FRANCISCO, Dec. 5, 2012 /PRNewswire/ -- KKR Financial Holdings LLC
(NYSE:KFN) (the "Company") today announced that the Company entered into a
credit agreement with Citibank N.A., Bank of America, N.A., Deutsche Bank AG
New York Branch, Morgan Stanley Bank, N.A., Royal Bank of Canada, Societe
Generale, and Wells Fargo Bank, National Association for a new three-year $150
million revolving credit facility (the "Facility"). The Facility replaces the
Company's $250 million credit facility (the "Prior Facility") that was due to
mature in May 2014. The material terms of the Facility are outlined in a Form
8-K filed today by the Company with the Securities and Exchange Commission.

Highlights of the Facility are as follows:

  oThe initial commitments under the Facility total $150 million with the
    ability to obtain additional commitments to increase the total committed
    amount up to $350 million.
  oThe Facility matures in November 2015 as compared to May 2014 for the
    Prior Facility.
  oLoans under the Facility bear interest at LIBOR plus 2.25% (or, at the
    Company's option, a base rate plus 1.25%) as compared to LIBOR plus 3.25%
    (or a base rate plus 2.25%) for the Prior Facility.
  oThe Facility does not limit the percentage of the Company's estimated
    annual taxable income that can be paid to shareholders as distributions,
    whereas the Prior Facility prohibited payment of distributions in excess
    of 65% of the Company's estimated annual taxable income.
  oThe Facility is secured by a pledge over the capital stock of certain of
    the Company's direct subsidiaries and borrowings are not tied to asset
    values, whereas borrowings under the Prior Facility were determined by
    advance rates applied to market values of assets pledged to the Prior

"Our new credit facility provides us with a source of incremental liquidity
for transactions and working capital whose borrowing limits are not impacted
by mark-to-market valuation provisions. This is a significant improvement
from our prior credit facility, under which borrowings were not insulated from
asset price fluctuations," said William C. Sonneborn, Chief Executive Officer
of the Company. "Removing these mark-to-market provisions as well as
restrictions on our distributions enhances our flexibility to drive value for


KKR Financial Holdings LLCis 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
byKKR Financial Advisors LLC, a wholly-owned subsidiary ofKKR Asset
Management LLC, which is a wholly-owned subsidiary of Kohlberg Kravis Roberts
& Co. L.P. Additional information regardingKKR Financial Holdings LLCis
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 are based on information available to the Company as of the date of
this press release and actual results may differ. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
beyond the Company's control. 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 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:         Media Contact:
Pam Testani                 Kristi Huller
KKR Financial Holdings LLC  Kohlberg Kravis Roberts& Co. L.P.
Tel: +1 (415) 315-6597      Tel: +1 (212) 230-9722
investor-relations@kkr.com  media@kkr.com

SOURCE KKR Financial Holdings LLC

Website: http://www.kkr.com
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