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 firstname.lastname@example.org
Media Contact: Kristi Huller Kohlberg Kravis Roberts & Co. Tel: +1 (212) 230-9722 email@example.com
SOURCE KKR Financial Holdings LLC