For the first quarter our run rate cash earnings per share totaled $0.26 per common share, which equates to an 11% cash return on equity and total net cash earnings per share totaled $0.36, which equates to a 15% cash return on equity. I do want to highlight that our run rate cash earnings per share reflects semi-annual coupon payments on our convertible notes payable on our first and third quarters, which when normalized in a straight-line basis results in run rate cash earnings per share of $0.29 or at 12% cash return on equity for the first quarter of 2012, compared to $0.27, a $0.02 decrease, normalized earnings per share for the fourth quarter of 2011.As we have discussed on previous calls, one of our strategic goals for the past year has been to source low-cost, long-term capital so that we could deploy it accretively when market opportunities are attractive. During the quarter we sourced incremental capital through the issuance of $115 million of 30-year of senior notes that bear interest at 7.5%. This pricing compares favorably to our first 30-year senior note offering we did last November, which was done at a rate 8.38%. We have now raised $374 million of 30-year financing at a blended cost of 8.1%.
KKR Financial Holdings' CEO Discusses Q1 2012 Results - Earnings Call Transcript
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