KKR Financial Holdings LLC Announces Proposed Common Share Offering

SAN FRANCISCO, March 31 /PRNewswire-FirstCall/ -- KKR Financial Holdings
LLC (NYSE: KFN) (the "Company") today announced a proposed public offering of
20,000,000 of its common shares.
Net proceeds from the offering will be used for general corporate
purposes. General corporate purposes may include repayment of debt,
acquisitions, additions to working capital, capital expenditures and
investments in the Company's subsidiaries. Net proceeds may be temporarily
invested prior to deployment for their intended purposes.
The joint bookrunning managers for the offering are Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley &
Co. Incorporated and Banc of America Securities LLC. KKR Capital Markets LLC
is co-lead manager and JMP Securities LLC, Sandler O'Neill & Partners, L.P.
and Friedman, Billings, Ramsey & Co., Inc. are co-managers.
A registration statement on Form S-3 relating to these common shares was
filed with the Securities and Exchange Commission ("SEC") and became effective
upon filing. The prospectus supplement and accompanying prospectus relating
to the offering of common shares will be filed with the SEC.
When available, copies of the prospectus supplement and accompanying
prospectus may be obtained from: Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 250 Vesey Street, New York, NY 10080 (telephone:
(212) 499-1000), Citigroup Global Markets Inc., Brooklyn Army Terminal, 140
58th Street, 8th Floor, Brooklyn, NY 11220 (telephone: (718) 765-6732; fax:
(718) 765-6734), Morgan Stanley & Co. Incorporated, 180 Varick Street 2/F, New
York, NY 10014 (telephone: (866) 718-1649) or by e-mail to
prospectus@morganstanley.com and Banc of America Securities LLC, Capital
Markets Operations, 100 West 33rd Street, 3rd Floor, New York, NY 10001 or by
e-mail to dg.prospectus_distribution@bofasecurities.com.
This press release shall not constitute an offer to sell or a solicitation
of an offer to buy any securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
This press release contains statements that do not directly or exclusively
relate to historical facts. These types of statements are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All forward-looking statements rely on assumptions and are subject to
risks, uncertainties and other factors that could cause the Company's actual
results to differ materially from expectations. You should read and interpret
any forward-looking statements together with the risk factors contained under
the caption "Risk Factors" in the prospectus supplement for the offering to
which this release relates and the Company's other SEC filings. Any forward-
looking statement speaks only as of the date on which that statement is made.
The Company will not update any forward-looking statement to reflect events or
circumstances that occur after the date on which the statement is made.
Investor Relations:
Laurie L. Poggi
KKR Financial
(415)315-3718

Media:
Roanne Kulakoff/Joseph Kuo
Kekst and Company
(212)521-4837/4863

SOURCE KKR Financial Holdings LLC

Investor Relations, Laurie L. Poggi of KKR Financial, +1-415-315-3718; or
Media, Roanne Kulakoff, +1-212-521-4837, or Joseph Kuo, +1-212-521-4863, both
of Kekst and Company