KFN Acquisition Will Bolster KKR’s Distribution

KKR & Co. L.P. (NYSE:KKR)’s deal to acquire KKR Financial Holdings LLC (NYSE:KFN) will bolster KKR’s distribution and enhance its balance sheet composition, notes Citi. William R Katz and Citi Research’s team of analysts also point out the deal would, however, throw a few complexities to grapple with. KKR’s announcement to acquire KFN Yesterday, KKR made its surprise announcement that it will purchase KKR Financial Holdings LLC (NYSE:KFN), a specialty focused company, in an all-stock deal, and anticipate the transaction would close in 1H14, likely in 2Q14. The deal involves KKR issuing 0.51 units for each KFN share, issuing 104 million…