KKR Financial Holdings LLC Announces Second Upsize of KKR Financial CLO 2011-1, Ltd.

Sep 30, 2013, 17:06 ET from KKR Financial Holdings LLC

SAN FRANCISCO, Sept. 30, 2013 /PRNewswire/ -- KKR Financial Holdings LLC (NYSE: KFN) (the "Company") today announced that it has added $300 million to the total facility size of KKR Financial CLO 2011-1, Ltd. ("CLO 2011-1").  The increase results from an amendment to the transaction whereby CLO 2011-1 may now borrow up to an incremental $225 million to purchase senior secured corporate loans.  In connection with the upsize, the Company increased its residual interest in the transaction through the acquisition of an additional $75 million of subordinated notes issued by CLO 2011-1.

The cost of the financing remains three-month LIBOR plus 1.35%.

CLO 2011-1 initially closed on March 31, 2011 as a privately negotiated financing transaction between the Company and a third-party senior lender. The transaction was previously upsized on July 6, 2011.

"This transaction represents the continuation of a creative and successful partnership," said Craig J. Farr, the Company's Chief Executive Officer. "It provides us with a highly attractive source of financing for loan collateral in an opportunistic structure that has generated approximately 15% annualized cash returns for KFN's shareholders over the last two years."

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 Kohlberg Kravis Roberts & Co. Tel: +1 (415) 315-6597 investor-relations@kkr.com

Media Contact: Kristi Huller Kohlberg Kravis Roberts & Co. Tel: +1 (212) 750-8300  media@kkr.com

SOURCE KKR Financial Holdings LLC