UPDATE 1-KKR Financial selling shares, planning acquisitions

Mon May 3, 2010 5:46pm EDT

* KKR Financial plans to sell 25 mln shares

* Share price not yet determined

* Says proceeds for acquisitions

NEW YORK, May 3 (Reuters) - A specialty finance company managed by private equity firm Kohlberg Kravis Roberts & Co [KKR.UL] on Monday said it was selling shares to raise money for acquisitions.

San Francisco, California-based debt fund KKR Financial Holdings LLC KFN.N said it would sell 25 million common shares and use proceeds from the sale for asset acquisitions and general corporate purposes. The company has not yet set a price for the offering.

Bank of America Merrill Lynch, Citi, Deutsche Bank Securities, KKR Capital Markets LLC and Morgan Stanley are operating as joint book-runners on the offering. FBR Capital Markets & Co, JMP Securities, Keefe, Bruyette & Woods and Sandler O'Neill + Partners LP are acting as co-managers.

The underwriters have the option to purchase an additional 3.75 million shares. (Reporting by Clare Baldwin; editing by Carol Bishopric)

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