- Current report filing (8-K)
01 April 2009 - 2:45AM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported):
March 31,
2009
KKR
FINANCIAL HOLDINGS LLC
(Exact
name of registrant as specified in charter)
Delaware
(State
or Other Jurisdiction of Incorporation)
001-33437
(Commission File
Number)
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11-3801844
(IRS Employer
Identification No.)
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550 California Street, 50
th
Floor
San Francisco, California
(Address
of principal executive offices)
415-315-3620
(Registrants
telephone number, including area code)
N/A
(Former
name or former address, if changed since last report)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o
Written Communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM 8.01. Other Events.
On March 31, 2009, KKR Financial Holdings LLC
(the
Company
) announced that it had completed the restructuring of its
market value collateralized loan obligation transaction, Wayzata Funding LLC (
Wayzata
). As a result of the restructuring,
substantially all of Wayzatas assets have been transferred to KKR Financial
CLO 2009-1, Ltd., a newly formed special purpose company organized in the
Cayman Islands (the CLO), which has issued $560,790,000 aggregate principal
amount of Class A Senior Secured Notes due April 2017 (the Class A
Notes) and $154,299,869 aggregate principal amount of Subordinated Notes due April 2017
(the Subordinated Notes, and together with the Class A Notes, the
Notes
),
to the existing Wayzata note holders, in exchange for cancellation of the
Wayzata notes, due November 2012, previously held by each of them. The CLO has been structured as a cash flow
transaction and does not contain the market value provisions contained in
Wayzata. The portfolio manager of the CLO is an affiliate of the Companys
investment manager. The Notes are
secured by the same collateral that secured the Wayzata facility, consisting
primarily of senior secured leveraged loans with a weighted average life of
approximately 5.1 years. As was the case
with Wayzata, the Company and an affiliate currently own all of the
Subordinated Notes issued by the CLO. The
Subordinated Notes entitle the Company to receive a
pro rata
portion
of all excess cash flows from the portfolio after all senior obligations of the
CLO have been paid in full or otherwise satisfied, including all outstanding
principal of the Class A Notes and interest thereon accruing at a rate of
3-month LIBOR plus 4.25%. If the
CLO fails to satisfy a leverage requirement
that will be tested in 2011, any
excess cash flows from the portfolio that would otherwise be payable on the
Subordinated Notes upon repayment in full of the Class A Notes will be
reduced by the amount of an additional payment to the Class A Notes over
and above the interest and principal then due on the Class A Notes.
The Company also announced
that it was notified by the New York Stock Exchange (
NYSE
) that,
based upon the modified listing standards adopted by the NYSE on February 26,
2009, the Company has regained compliance with the NYSEs continued
listing standard requiring a minimum average closing price of at
least $1.00 per share over 30 consecutive trading days. As previously
disclosed, the Company was notified by the NYSE in December 2008 that
it had fallen below the NYSEs continued listing standard relating to the
Companys closing share price. No assurance can be made that the
Company will continue to meet these requirements.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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KKR FINANCIAL HOLDINGS LLC
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(Registrant)
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By:
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/s/ Jeffrey B. Van Horn
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Date:
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March 31,
2009
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Jeffrey B. Van Horn
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Chief Financial Officer
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3
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