KKR Financial Holdings LLC Prices $225 Million Senior Notes Offering

SAN FRANCISCO, Nov. 7, 2011 /PRNewswire/ -- KKR Financial Holdings LLC (NYSE: KFN) (the "Company") today announced pricing of its public offering of Senior Notes due 2041 (the "Notes").  The offering is expected to close on November 15, 2011, subject to customary closing conditions.  The Notes are being offered in an underwritten registered public offering. We intend to list the Notes on the New York Stock Exchange under the symbol "KFH" and expect trading in the Notes on the New York Stock Exchange to begin within 30 days after the Notes are first issued.

Total aggregate gross proceeds from the offering are approximately $225 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 $33.75 million aggregate principal amount of additional Notes.

Interest on the Notes will be paid quarterly on February 15, May 15, August 15 and November 15 of each year, beginning February 15, 2012, at a rate of 8.375 percent per year and the Notes will mature on November 15, 2041 unless earlier repurchased or redeemed.  

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. KKR Capital Markets LLC and RBC Capital Markets, LLC are acting as co-managers of the offering.

The total net proceeds to the Company from the offering of the Notes will be approximately $218 million, exclusive of any proceeds attributable to the underwriters' possible exercise of their over-allotment option.  The Company intends to use a portion of the net proceeds to repurchase or repay a portion of its existing senior indebtedness, with the remaining proceeds to be used for general corporate purposes.

The Company has filed a registration statement (including a prospectus) and a prospectus supplement with the Securities and Exchange Commission (the "SEC") for the offering of the Notes described in this press release. Before you invest, you should read the prospectus and 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 Notes. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the prospectus supplement (including the prospectus) may be obtained by contacting Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: 1-877-858-5407; Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, telephone: 1-866-718-1649 or by emailing [email protected]; 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 [email protected].

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes described herein, nor shall there be any sale of these Notes 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 Notes will be made only by means of the prospectus supplement and the related prospectus. The Notes 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 that invests in multiple asset classes. KKR Financial Holdings LLC 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.  Additional information regarding KFN is 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 include, but are not limited to, statements related to the proposed offering of Notes, the anticipated use of proceeds there from and the expected trading date of the Notes 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 prospectus supplement, dated the date hereof, (ii) its Annual Report on Form 10-K for the fiscal year ended December 31, 2010, filed with the SEC on February 28, 2011 and (iii) its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011, filed with the SEC on November 3, 2011.

Investor Relations Contact:
Angela Yang
415-315-6567
[email protected]

Media Contact:
Kristi Huller
212-750-8300
[email protected]

SOURCE KKR Financial Holdings LLC

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