KKR Financial greenshoe exercise ups 8.375% notes to $258.75 million

By Susanna Moon

Chicago, Nov. 15 - KKR Financial Holdings LLC underwriters fully exercised the $33.75 million over-allotment option on its 8.375% 30-year $25-par senior notes, bringing the total deal size to $258.75 million, according to an 8-K filing with the Securities and Exchange Commission.

KKR priced $225 million of the notes on Nov. 8 at the low end of price talk, which was for a yield of 8.375% to 8.5%.

The notes (/BBB-/BBB) mature Nov. 15, 2041. Interest is payable quarterly beginning on Feb. 15, 2012.

KKR has the option to redeem the notes, in whole or in part, after Nov. 15, 2016 at par plus accrued dividends.

Also, upon a change of control, the company will be required to offer noteholders 101% of the principal amount, plus accrued dividends.

The notes will be listed on the New York Stock Exchange under "KFH."

Settlement is expected on Nov. 15.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. KKR Capital Markets LLC and RBC Capital Markets LLC are the co-managers.

Proceeds will be used to repurchase or repay existing senior debt and for general corporate purposes.

KKR is a New York-based global investment firm with $58.7 billion in assets under management as of Sept. 30.

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