KKR Financial delays debt payment

The listed affiliate of the US buyout firm has delayed payment on debt relating to two asset-backed vehicles for the second time. KKR Financial raised $500 million in funds last year following losses related to the US mortgage sector.

The listed affiliate of the US buyout firm KKR Financial Holdings has delayed payment to the holders of notes in two asset-backed vehicles for a second time due to an ongoing restructuring, according to a regulatory filing.

The firm had initially delayed payment in October with 50 percent of the principal balance due on February 15, which has now been delayed until March 3. The firm did not say how much debt had been affected.

The holders of a majority of the notes are allowed to terminate the extension upon one business day of written notice. Upon the expiration or termination of the extension without further agreement on restructuring the notes will become due and payable.  

The move comes after Kohlberg Kravis Roberts launched a $270 million (€184.6 million) rights issue and sold $230 million of shares to shore up KKR Financial in August after losses in the US residential mortgage sector.

KKR Financial’s share price opened at $14.53 per share having dropped by nearly 2 percent yesterday.