KKR Financial Holdings LLC Announces Closing of KKR Financial CLO 2012-1, Ltd.
SAN FRANCISCO, Dec. 21, 2012
SAN FRANCISCO, Dec. 21, 2012 /PRNewswire/ -- KKR Financial Holdings LLC
(NYSE:KFN) (the "Company") today announced the closing of KKR Financial CLO
2012-1, Ltd. ("CLO 2012-1" or the "CLO"), a $412 million collateralized loan
obligation. This transaction represents the Company's reentry into the
broadly syndicated securitization market for the first time since 2007.
Citigroup Global Markets Inc. acted as arranger, while KKR Capital Markets LLC
acted asa placement agent.
Proceeds will be used to finance a portfolio of primarily senior secured
leveraged loans. The CLO has a four-year reinvestment period and a two-year
non-call period, with a final maturity of December 16, 2024. KKR Financial
Advisors II, LLC, a wholly-owned subsidiary of KKR Asset Management LLC, will
serve as collateral manager. KKR Asset Management LLC oversaw approximately
$17 billion of predominantly credit investments as of September 30, 2012.
The Company will hold approximately 52% of the CLO's approximately $45 million
of subordinated notes, with the remainder being held by unaffiliated third
parties. Apart from the subordinated notes held by the Company, the notes
issued by CLO 2012-1 are non-recourse to the Company.
"We are pleased to announce the closing of our first syndicated CLO
transaction in over five years," said William C. Sonneborn, CEO of KFN and KKR
Asset Management LLC. "This transaction reflects our view that CLOs are an
increasingly attractive strategy for KFN in the current environment."
ABOUT KKR FINANCIAL HOLDINGS LLC
KKR Financial Holdings LLC(NYSE:KFN) 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 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 Section27A of the Securities Act of 1933, as amended, and
Section21E 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 Form10-K for the fiscal year ended
December31, 2011, filed with the SEC on February28, 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
SOURCE KKR Financial Holdings LLC
Press spacebar to pause and continue. Press esc to stop.