SAN FRANCISCO, Sept. 24 /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC (the "Company") today announced the completion of its previously announced $270 million common share rights offering ("Rights Offering"). The maximum amount of the Rights Offering, or $270 million, was purchased and was comprised of approximately $213.4 million from existing shareholders and approximately $56.6 million from certain principals of Kohlberg Kravis Roberts & Co. L.P. pursuant to previously announced backstop commitments related to the Rights Offering (the "Backstop Sale"). The Rights Offering (including the Backstop Sale, which is scheduled to close on or about October 2, 2007) will result in the Company issuing approximately 18.75 million common shares at $14.40 per common share. Gross proceeds from the Rights Offering, including the Backstop Sale, will total approximately $270 million and will be used for general corporate purposes. As a result of the consummation of the Rights Offering, as of September 24, 2007, the Company had 111,316,698 common shares outstanding, which will increase to 115,248,990 common shares outstanding following completion of the Backstop Sale.
As previously announced, the Company completed a common share offering ("Common Share Offering") totaling approximately $230.4 on August 21, 2007 in which the Company issued 16 million common shares at $14.40 per common share. In aggregate, the Rights Offering and Common Share Offering resulted in the Company issuing approximately 34.75 million common shares at $14.40 per common share and the transactions in aggregate generated gross proceeds of approximately $500.4 million.
Nino Fanlo, the Company's Chief Executive Officer, stated, "We would like to thank our shareholders for this demonstration of support for the Company. We believe that raising $500.4 million strengthens our balance sheet and positions the Company to opportunistically take advantage of current market opportunities for corporate debt investments."
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a specialty finance company that uses leverage with the objective of generating competitive risk-adjusted returns. The Company seeks to achieve its investment objective by investing in (i) corporate loans and debt securities, (ii) marketable equity securities, and (iii) non-marketable equity securities. The Company also makes opportunistic investments in other asset classes from time to time. KKR Financial Advisors LLC manages the Company pursuant to a management agreement. KKR Financial Holdings LLC and KKR Financial Advisors LLC are affiliates of Kohlberg Kravis Roberts & Co. L.P.
Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, the availability, terms and deployment of capital to finance planned growth, risks associated with investing in mortgage-related assets, the Company's limited liability company and organization structure and the regulatory environment in which its business operates, as described in the Company's filings with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
CONTACT: Investors Laurie L. Poggi KKR Financial (415) 315-3718 Media Roanne Kulakoff/Joseph Kuo Kekst and Company (212) 521-4837/4863
