KKR In Credit Crunch

Even the barbarians didn't think the credit crisis would last this long.

A firm affiliated with leveraged buyout giant Kohlberg Kravis Roberts & Co., run by billionaire Henry Kravis, was forced to seek a two-week delay on the repayment of billions of dollars of debt after failing to find investors to refinance.

KKR Financial Holdings, whose stock has fallen 50 percent in the last six months, said yesterday that it had reached an agreement with its lenders to delay repayment of the short-term debt while it continues discussions on restructuring.

Keep Reading

Read more takes on KKR's refinancing woes from the Globe & Mail, the Financial Times, Bloomberg News (via the NYT), and MarketWatch.

Comments

[nomoredead]

I would like to see some buybacks by employees of these companies for pennies on the dollars to screw these guys back. Then build the companies back strong.

[leftLibertarian]

LOL

[Troubledwawa]

Watch you 401K's people...



From the article: "While most analysts said KKR Financial's announcement won't result in any losses for the firm, it rekindled concerns that the short-term debt market continues to be frozen after a brief rebound in early January.

That has left institutions such as pensions and money-market funds holding securities they can't cash in.

Florida's State Board of Administration, which manages money for municipalities in the Sunshine State, has $500.7 million invested in KKR Financial's debt. "

[Troubledwawa]

^ your

[workingboy]

luv Henry Kravis. in the go-go 80's I was at Park & 57th. his driver was waiting for light to change while HK, in the back seat, amused himself by picking his nose, unaware anyone would notice. oh, to have had a phone/camera! HK, goin' for the gold! booger lovers of America rejoice! BTW, this credit crisis has only JUST BEGUN. is it true that auto/SUV repo's are now escalating?

[mrcontinental]

It's true. The repo man has been quite busy of late.

[Justinpassing]

Pitty the fools who threw more good money after bad with todays KKR, because trouble compounds daily in these digs and it's just getting up a good head of steam. I wish you'd a' had that camera also Workingboy. HK may end up like W who didn't know when to quit and by the time he stopped mining the cavern, both frontal lobes went missing.

[ErnestineBass]

Kravis and his ilk are nothing more than pedigreed auto junkyard dealers.

[WIpatriot]

I prefer to think of them as pedigreed condors, EB. Auto junkyards have value.

[realitytrumpsbull]

Funny-money lending practices bear their own karma...

[mpgarr]

If a company like KKR goes down in this whole mess--then it would sure as hell be worth it--this company produces nothing of real value, save making money for its managers and "share holders." What KKR does as a business is to serve as the business equivalent of many Hurricane Katrinas---when it buys businesses--its goal is to not try to bring those companies to back to health and be profitable, productive companies--it goes in and merely "extracts any remaining value" leaving the empty crumbled shell of the now defunct companies left on the ground like so much trash. What they do destroys lives and weakens communities--many of them look like what New Orleans and the Gulf Coast did when a real storm was through with them---
I would be most happy to see KKR go down--but they are slick bastards and know how to work the system---they will unfortunately most likely rebound and will continue on gutting companies and making a handful of people insanely rich, all the while playing a role in the fall of America.

[mrcontinental]

Amen brother!

[Sciguy]

The full article (click on "Keep Reading") said:

"In August, the firm got a $230 million cash infusion from investors because of losses on mortgage investments and then raised another $270 million in a stock offering with some of KKR's own partners, including Kravis and George Roberts, putting in some of their own money."

So... lemme git this right... those guys sucked money out of other people, found themselves in trouble, sort of gave some of the money back by buying even more stock, and now they're heroes because they put back a fraction of what they took in the first place?

Sheesh! Where can I sign up for this type of windfall? Note: I don't have a few million or billion to start with, so please make sure I can sign up with a few hundred and use that to suck up a few million...

[nomoredead]

Rule # 1 Never use your own money.

[joja]

Awwwwwwww! Trickle down economics not working for Wall street, either?

Tooooooooo fuckin' bad, assholes!! Guess that means no new Lexus for the mistress, huh?

Don't worry, tho. George & Dick will arrange everything so the American taxpayer is left (bending over) with the bill!

[JScott]

Wouldn't be surprised if somehow they start cutting down all those forests they acquired from Pacific Lumber and damn whatever the locals say and whatever laws they break-they'll just say we had to generate a lotta revenue quickly.

[mrcontinental]

Well we know one group who's sitting on a mound toxic CDO's now don't we? I have no sympathy what so ever for them.

[WIpatriot]

Zero, zip, nada, bupkis.

They should all fold up and shareholders should sue the CEO and BoD for malfeasance.

[mrcontinental]

Damn right!