KKR Real Estate Finance Trust Inc. Announces Pricing of Public Offering of 6.50% Series A Cumulative Redeemable Preferred Stock

Rhea-AI Summary

KKR Real Estate Finance Trust Inc. (KREF) has priced a public offering of 6,000,000 shares of its 6.50% Series A Cumulative Redeemable Preferred Stock at $25.00 per share, aiming to raise $150 million. An additional 900,000 shares may be purchased by underwriters within 30 days. The offering is expected to close on April 16, 2021. Proceeds will be used for acquiring target assets and general corporate purposes. KREF plans to list the Preferred Stock on the NYSE under the symbol KREF PRA.

Positive

• Expected gross proceeds of $150 million will support asset acquisitions and corporate purposes.
• Listing of Preferred Stock on NYSE may enhance market visibility.

Negative

• Issuance of new shares could lead to potential dilution for existing shareholders.

KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) today announced the pricing of a public offering of 6,000,000 shares of its 6.50% Series A Cumulative Redeemable Preferred Stock (the “Preferred Stock”) at a public offering price of $25.00 per share. KREF also granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of the Preferred Stock at the public offering price, less underwriting discounts and commissions. The Preferred Stock will have a $25.00 per share liquidation preference. KREF will receive gross proceeds of $150,000,000 from the sale of the Preferred Stock before deducting the underwriting discount and other estimated offering expenses. The offering is expected to close on April 16, 2021, subject to customary closing conditions.

KREF intends to use the net proceeds from the offering to acquire its target assets in a manner consistent with its investment strategies and investment guidelines and for general corporate purposes.

KREF intends to file an application to list the Preferred Stock on the New York Stock Exchange under the ticker symbol “KREF PRA.”

Raymond James & Associates, Inc. and KKR Capital Markets LLC are acting as joint book-running managers for the offering.

Shelf registration statements on Form S-3, including a prospectus, related to the Preferred Stock have been filed by KREF with the U.S. Securities and Exchange Commission (“SEC”) and have become effective. The offering will be made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained from Raymond James & Associates, Inc., Attn: Syndicate, 880 Carillon Parkway, St. Petersburg, FL 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com, or from KKR Capital Markets LLC, 30 Hudson Yards, New York, NY 10001 or by telephone at (212) 230-9433, or by visiting the SEC’s website at www.sec.gov under KREF’s name.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook,” “believe,” “expect,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” the negative version of these words, other comparable words or other statements that concern KREF’s operations, strategy, projections or intentions. These “forward-looking” statements include statements relating to, among other things, the proposed offering of the Preferred Stock, the expected use of the net proceeds from the offering, and KREF’s expectations concerning market conditions for an offering of the Preferred Stock. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, in particular due to the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19 on KREF’s business, financial performance and operating results. The forward-looking statements are based on KREF’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KREF or are within its control. Such forward-looking statements are subject to various risks and uncertainties, including those described under Part I-Item 1A. “Risk Factors” in KREF’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC, as such factors may be updated from time to time in KREF’s periodic filings with the SEC. Accordingly, actual outcomes or results may differ materially from those indicated in this release. All forward-looking statements in this release speak only as of the date of this release. KREF undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

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FAQ

What is the offering size and price for KREF's new shares?

KKR Real Estate Finance Trust Inc. has priced a public offering of 6,000,000 shares at $25.00 each, aiming to raise $150 million.

When is the expected closing date for KREF's offering?

The offering is expected to close on April 16, 2021.

What are the intended uses for the proceeds from KREF's offering?

The proceeds will be used to acquire target assets and for general corporate purposes.

Will KREF's Preferred Stock be listed on a stock exchange?

Yes, KREF intends to list the Preferred Stock on the New York Stock Exchange under the ticker symbol KREF PRA.

What are the potential risks for shareholders regarding KREF's offering?

Issuing new shares may lead to dilution of existing shareholders' equity.