KKR Financial Holdings LLC Announces Completion of New CLO Transaction and Regains Compliance With NYSE Stock Price Listing Stan

SAN FRANCISCO, March 31  /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC (NYSE:KFN) (the "Company" or "KFN") today announced that it has closed a $715 million cash flow CLO transaction, KKR Financial CLO 2009-1, Ltd., with a maturity date of April 2017.  As a result of this transaction, Wayzata Funding LLC, the Company's market value CLO structure that closed on November 5, 2007, will be wound down and its assets will be transferred to the new CLO, with interests in the Wayzata facility being exchanged for interests in the new CLO.  The material terms of KKR Financial CLO 2009-1, Ltd. are outlined in a Form 8-K filed today with the Securities and Exchange Commission.

"The completion of this transaction is another critical step in addressing the structural challenges faced by KFN. We remain committed to the long-term success of KFN," said Bill Sonneborn, Chief Executive Officer.

NYSE Listing Standard

In addition, on March 23, 2009 the Company was notified by the New York Stock Exchange ("NYSE") that, based upon the modified listing standards adopted on February 26, 2009 in which the NYSE temporarily suspended its $1 minimum price requirement and extended until June 30, 2009 the average global market capitalization standard, the Company has regained compliance with the NYSE continued listing standards.  As previously announced, the Company was notified by the NYSE in December 2008 that it had fallen below the NYSE's minimum price criterion.

About KKR Financial Holdings LLC

KKR Financial Holdings LLC is a publicly traded specialty finance company that invests in multiple asset classes. KKR Financial Holdings LLC is externally managed by KKR Financial Advisors LLC, a wholly-owned subsidiary of Kohlberg Kravis Roberts & Co. (Fixed Income) LLC, which is a wholly-owned subsidiary of Kohlberg Kravis Roberts & Co. L.P. Additional information regarding KKR Financial Holdings LLC is available at http://www.kkr.com/. 

DATASOURCE: KKR Financial Holdings LLC



CONTACT:  Investors, Laurie L. Poggi, [phone], or Media, Peter

McKillop, or Kristi Huller, [phone], , all of KKR Asset

Management



Web Site:  http://www.kkr.com/ 

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