KKR Financial Holdings LLC Prices 7.375% Series A LLC Preferred Shares

    KKR Financial Holdings LLC Prices 7.375% Series A LLC Preferred Shares

PR Newswire

SAN FRANCISCO, Jan. 10, 2013

SAN FRANCISCO, Jan. 10, 2013 /PRNewswire/ -- KKR Financial Holdings LLC (NYSE:
KFN) (the "Company") today announced pricing of a public offering of 13
million 7.375% Series A LLC Preferred Shares (the "Shares") at a public
offering price of $25 per Share. Distributions on the Shares will be paid
quarterly, when, as and if declared by the Company's board of directors on
January 15, April 15, July 15 and October 15 of each year, beginning April 15,
2013. The Shares are being offered in an underwritten registered public
offering. The offering is expected to close on January 17, 2013, subject to
customary closing conditions. The Company intends to apply to list the Shares
on the New York Stock Exchange under the symbol "KFP." If the application is
approved, the Company expects trading in the Shares on the New York Stock
Exchange to begin within 30 days after the Shares are first issued.

Total aggregate gross proceeds from the offering are $325 million, exclusive
of any proceeds attributable to the underwriters' possible exercise of their
over-allotment option. In connection with this offering, the Company has
granted the underwriters an over-allotment option to purchase up to an
additional 1.95 million Shares for additional aggregate gross proceeds of
$48.75 million.

The net proceeds to the Company from the offering of the Shares after
deducting the underwriting discount will be approximately $314.76 million,
excluding offering expenses payable by the Company, and exclusive of any
proceeds attributable to the underwriters' possible exercise of their
over-allotment option. The Company intends to use the net proceeds for general
corporate purposes, including payments made in connection with the repurchase,
redemption or conversion of the Company's outstanding senior indebtedness.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC
and Wells Fargo Securities, LLC are acting as joint book-running managers for
the offering. RBC Capital Markets, LLC is acting as lead manager for the
offering and KKR Capital Markets LLC is acting as co-manager for the offering.

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 Shares described in this press release.
Before investing, prospective buyers 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 Shares. These documents may be obtained
for free by visiting EDGAR on the SEC website at www.sec.gov.Alternatively,
the preliminary prospectus supplement and final prospectus supplement, when
available (including the prospectus), may be obtained by contacting Citigroup
Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, telephone: 1-800-831-9146; Morgan Stanley & Co.
LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus Department,
telephone: 1-866-718-1649 or by emailing prospectus@morganstanley.com; UBS
Securities LLC, 299 Park Avenue, New York, NY 10171, Attention: Prospectus
Specialist, telephone: 1-877-827-6444, ext. 561 3884; or Wells Fargo
Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North
Carolina 28262, Attention: Capital Markets Client Support, telephone:
1-800-326-5897 or by emailing cmclientsupport@wellsfargo.com.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy the Shares described herein, nor shall there be any sale of
these Shares 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
Shares will be made only by means of the prospectus supplement and the related
prospectus. The Shares 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 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.

"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 Shares, the anticipated use of proceeds therefrom and the expected
trading date of the Shares on the New York Stock Exchange. 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, dated the
date hereof, (ii) its Annual Report on Form 10-K for the fiscal year ended
December 31, 2011, filed with the SEC on February 28, 2012 and (iii) Item 8.01
of its Current Report on Form 8-K, filed with the SEC on January 10, 2013.

Investor Relations Contact:
Pam Testani
(415) 315-6597
investor-relations@kkr.com

Media Contact:
Kristi Huller
(212) 750-8300
media@kkr.com

SOURCE KKR Financial Holdings LLC

Website: http://www.kkrkfn.com
 
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