This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

KKR Financial Holdings LLC Announces Closing Of KKR Financial CLO 2013-1, Ltd.

SAN FRANCISCO, June 25, 2013 /PRNewswire/ -- KKR Financial Holdings LLC (NYSE: KFN) (the "Company") today announced the closing of KKR Financial CLO 2013-1, Ltd. ("CLO 2013-1" or the "CLO"), a $519 million collateralized loan obligation transaction.  Citigroup Global Markets Inc. acted as lead initial purchaser and placement agent, KKR Capital Markets LLC acted as an initial purchaser and placement agent and Natixis Securities Americas LLC acted as a placement agent.

Proceeds will be used to finance a portfolio of primarily senior secured leveraged loans.  The CLO has a four-year reinvestment period and a two-year non-call period, with a final maturity of July 15, 2025.  KKR Financial Advisors II, LLC, a wholly-owned subsidiary of KKR Asset Management LLC, will serve as collateral manager.  KKR Asset Management LLC oversaw approximately $19 billion of predominantly credit investments as of March 31, 2013.

The Company will hold the entirety of the CLO's approximately $61 million of subordinated notes.  Apart from these subordinated notes held by the Company, the notes issued by CLO 2013-1 are non-recourse to the Company.

"This transaction exemplifies our patient perspective on capital deployment.  By waiting to issue a CLO until the onset of recent credit market volatility, we've been able to capitalize on more attractive asset levels as we ramp the portfolio, a process which is 83% complete," said William C. Sonneborn, CEO of KFN and KKR Asset Management LLC.  "It also demonstrates our capabilities in creative structuring.  We believe this is the first U.S. CLO issuance designed to address the latest iteration of the European Union's risk retention rules."

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. Additional information regarding KFN is available at

Investor Relations Contact: Pam TestaniKohlberg Kravis Roberts & Co.Tel: +1 (415) 315-6597

Media Contact:Kristi HullerKohlberg Kravis Roberts & Co.Tel: +1 (212) 750-8300


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,043.54 -7.21 -0.04%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,816.9520 +6.1640 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs