SAN FRANCISCO, Oct. 18 /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC ("KFN" or the "Company") today announced that its REIT subsidiary, KKR Financial Corp., has consummated the restructuring (the "Restructuring") of its non-recourse asset-backed secured liquidity note facilities (the "Facilities"). Pursuant to the terms of the Restructuring, the maturity date of the notes has been extended, with approximately 50% of the principal balance due on February 15, 2008, and the remaining principal balance due on March 13, 2008. KKR Financial Advisors III LLC, the administrator for the Facilities, will, subject to certain conditions, continue to manage the Facilities and the residential mortgage-backed securities which serve as collateral (the "Collateral") for the Facilities.
The Company expects that all charges related to the Restructuring, including related contingencies and the Company's net investment in the Facilities, have been included in its previously announced anticipated charge of approximately $250 million for the quarter ended September 30, 2007. Under the terms of the Restructuring the Company continues to have the right, but not the obligation, to repurchase or refinance the Collateral and pay-off the Facilities prior to maturity date.
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a specialty finance company that invests in multiple asset classes. KKR Financial Holdings LLC is externally managed by KKR Financial Advisors LLC. KKR Financial Holdings LLC and KKR Financial Advisors LLC are affiliates of Kohlberg Kravis Roberts & Co. L.P. Additional information on KKR Financial Holdings LLC is available on the company's website at http://www.kkrkfn.com/.
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.
Investor Contact Media Contact Laurie Poggi Roanne Kulakoff and Joseph Kuo KKR Financial LLC Kekst and Company 415-315-3718 212-521-4837 and 212-521-4863
