KKR Financial Says NYSE Listing Put On Notice

NEW YORK (Reuters) – KKR Financial Holdings LLC (KFN.N), a debt fund managed by private equity firm Kohlberg Kravis Roberts & Co., said on Tuesday it had received a listing standards notice from the New York Stock Exchange.

KKR Financial said it was notified that it had fallen below the NYSE’s continued listing standard, which requires a minimum average closing price of $1 per share over 30 consecutive trading days.

It said it will seek to cure the deficiency and has six months to bring its average share price back above $1.

The stock will continue to be listed on the NYSE during the cure period, subject to its compliance with other listing requirements, it said.

Its shares closed up 18 cents, or 15.1 percent, at $1.37 on the New York Stock Exchange on Tuesday. The San Francisco-based company listed on the NYSE in June 2005 at $24 a share. It hit a 52-week low of 57 cents on Dec. 22.

Earlier this month, the company appointed a new chief executive who said it was reviewing its capital structure, business model and operating expenses amid market turbulence.

William Sonneborn was named chief executive in a shake-up that saw two of the firm’s top executives resign.

Last month, KKR Financial suspended its third-quarter dividend as it arranged for more time to pay off its borrowings.

Founded in July 2004, KKR Financial invests in such assets as corporate loans, high yield corporate bonds and distressed debt securities.

Kohlberg Kravis Roberts itself had planned to become a publicly listed entity this year, but in November it delayed those plans to 2009. (Reporting by Paritosh Bansal; Editing by Bernard Orr)