SAN FRANCISCO, Jan. 23, 2014 /PRNewswire/ -- KKR Financial
Holdings LLC (NYSE:KFN) (the "Company") today announced the closing
of KKR Financial CLO 2013-2, Ltd. ("CLO 2013-2" or the "CLO"), a
$384 million collateralized loan
obligation transaction. GreensLedge Capital Markets LLC acted
as arranger and placement agent and KKR Capital Markets LLC acted
as 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
January 23, 2026. 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 $21 billion
of predominantly credit investments as of September 30, 2013.
The Company will hold the entirety of the CLO's approximately
$45 million of subordinated
notes. Apart from these subordinated notes held by the
Company, the notes issued by CLO 2013-2 are non-recourse to the
Company.
Craig J. Farr, CEO of KFN,
said: "This transaction reflects our goal of being a frequent
issuer in the CLO market. We continue to see attractive
risk-adjusted cash returns in CLO subordinated notes, which have
the added benefit of diversifying KFN's CLO portfolio."
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 http://www.kkr.com.
Investor Relations Contact:
Pam Testani Tholen
Kohlberg Kravis Roberts & Co.
Tel: +1 (855) 374-5411 (US) / +1 (415) 315-3633
kfn.ir@kkr.com
Media Contact:
Kristi Huller
Kohlberg Kravis Roberts & Co.
Tel: +1 (212) 230-9722
kristi.huller@kkr.com
SOURCE KKR Financial Holdings LLC