By Stephanie N. Rotondo and E. Janene Geiss
Portland, Ore., Nov. 7 - KKR Financial Holdings LLC priced $225 million of senior notes due Nov. 15, 2041 and granted the underwriters an over-allotment option to purchase up to $33.75 million aggregate principal amount of additional notes, according to a news release.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers. KKR Financial Advisors LLC and RBC Capital Markets LLC are the co-managers.
Interest will be paid quarterly beginning on Feb. 15, 2012 at a rate of 8.375%.
Market sources reported on Monday that the notes would price at $25-par. Price talk was 8 3/8% to 8½%, according to the trader.
KKR has the option to redeem the notes, in whole or in part, beginning in November 2016 at par plus accrued interest.
Also, upon a change of control, the company will be required to offer noteholders 101% of the principal amount plus accrued interest.
The company expects the notes to be listed on the New York Stock Exchange under the ticker symbol "KFH."
The notes are expected to close on Nov. 15.
Proceeds will be used to repurchase or repay existing senior debt and for general corporate purposes.
KKR is a New York-based investment firm.
| Issuer: | KKR Financial Holdings LLC
|
| Issue: | Senior notes
|
| Amount: | $225 million
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| Greenshoe: | $33.75 million
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| Interest: | 8.375%, payable quarterly beginning on Feb. 15, 2012
|
| Price: | Par of $25
|
| Call option: | Beginning in November 2016 at par; 101 in the event of a change of control
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers. KKR Financial Advisors LLC and RBC Capital Markets LLC
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 15
|
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