KKR Financial Holdings LLC to Host Conference Call to Discuss $230.4 Million Common Share Offering and $270.0 Million Common Share Rights Offering to Common Shareholders

    SAN FRANCISCO, Aug. 20 /PRNewswire-FirstCall/ -- KKR Financial Holdings
 LLC ( KFN) announced that it will host a conference call and audio web
 cast today at 9:00 AM New York time. On the conference call management of
 KKR Financial Holdings LLC (the "Company") will discuss the following
 transactions:
     -- A common share offering consisting of a sale of 16,000,000 common
        shares to seven unaffiliated institutional investors (certain funds
        managed by Farallon Capital Management, L.L.C., Fir Tree Partners, JGE
        Capital Management, Marsico Capital Management, Morgan Stanley, Oak
        Hill Advisors, and Sageview Capital L.P.) in separately negotiated
        transactions registered under the Securities Act of 1933 at a price of
        $14.40 per share, which was the closing price of KFN's common shares on
        the NYSE on August 17, 2007.  Proceeds from the transaction total
        $230.4 million and the Company will use the net proceeds for general
        corporate purposes.
 
     -- A public rights offering registered under the Securities Act of 1933 of
        up to $270.0 million to its common shareholders. Under the terms of the
        rights offering, the Company will distribute non-transferable rights to
        subscribe for up to 18,750,000 common shares. Each holder of common
        shares will receive 0.19430 rights for each common share held at the
        close of business on August 30, 2007, the record date for the rights
        offering. The subscription price for the common shares offered in the
        rights offering will be $14.40 per share, which was the closing price
        for the Company's common shares on August 17, 2007. The rights will
        expire on September 19, 2007 at 5:00 p.m., New York City time, unless
        extended. The Company will use the net proceeds of the rights offering
        for general corporate purposes. Consummation of the rights offering is
        subject to general closing conditions.
 
     -- A backstop commitment agreement with principals of Kohlberg Kravis
        Roberts & Co. L.P., pursuant to which these persons have agreed,
        subject to customary conditions, to purchase up to approximately $100.0
        million of common shares at the same price per share of $14.40 to the
        extent that the rights offering is not fully subscribed.
     The conference call may be accessed by dialing (877) 502-9272
 (Domestic) or (913) 981-5581 (International); a pass code is not required.
 The replay will be available through September 4, 2007 by dialing (888)
 203-1112 (Domestic) and (719) 457-0820 (International) / pass code 5227456.
     Supplemental material that will be discussed during the call, as well
 as a live audio web cast, will be accessible on the company's website at
 http://www.kkrkfn.com in the Investor Relations section under the heading
     Webcasts & Events. A replay of the audio web cast will be archived in
 the Investor Relations section of the company's website.
     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.
     For more information about KKR Financial Holdings LLC or a copy of this
 press release visit its website at http://www.kkrkfn.com.
     CONTACT:
 
      Investors
      Laurie L. Poggi
      KKR Financial
      (415) 315-3718
 
      Media
      Roanne Kulakoff/Joseph Kuo
      Kekst and Company
      (212) 521-4837/4863
 
 

SOURCE KKR Financial Holdings LLC