KKR Moves to Satisfy CP Investors

In order to address the claims of commercial paper investors, KKR Financial Holdings LLC, San Francisco, has agreed to give them triple-A rated residential mortgage-backed securities supporting CP issued by asset-backed conduits. "This agreement and the sale of our REIT subsidiary mark a constructive resolution to an issue created by the unprecedented disruption in the credit markets," said Saturnio Fanlo, KKR Financial's chief executive officer. "Reflecting these conditions, our board of directors has approved an incremental charge of approximately $5.5 million, which we believe is an appropriate amount to resolve both the refinancing issues relating to the [commercial paper] notes issued by the REIT's two asset-backed conduits and complete the exit of our mortgage-related businesses."