By Stephanie N. Rotondo
Phoenix, Jan. 10 - KKR Financial Holdings LLC sold $325 million of 7.375% series A LLC perpetual preferred shares, according to a market source on Thursday.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
There is a $48.75 million, or 1.95 million share, over-allotment option.
Dividends will be payable on a quarterly basis in January, April, July and October, beginning in April.
The preferred shares become redeemable on Jan. 15, 2018 at par plus accrued dividends. If a change of control occurs before that date, the company has the option to redeem the securities in whole.
If a change of control happens before the first redemption date and KKR fails to give notice prior to the 31st day following said event, the dividend will increase by 5%.
The San Francisco-based specialty finance company will use proceeds from the sale for general corporate purposes, including payments made in connection with the repurchase, redemption or conversion of senior debt.
| Issuer: | KKR Financial Holdings LLC
|
| Securities: | Series A LLC preferred stock
|
| Amount: | $325 million, or 13 million shares
|
| Greenshoe: | $48.75 million, or 1.95 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Lead co-manager: | RBC Capital Markets LLC
|
| Co-manager: | KKR
|
| Dividend: | 7.375%
|
| Price: | Par of $25
|
| Yield: | 7.375%
|
| Talk: | Initially 7.625%, then revised to 7.375%
|
| Call options: | On or after Jan. 15, 2018 at par plus accrued dividends or upon a change of control
|
| Pricing date: | Jan. 10
|
| Settlement date: | Jan. 15
|
| Ratings: | Standard & Poor's: BB
|
| Fitch: BB+
|
| Expected symbol: | NYSE: KFP
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
