KKR Income Opportunities Fund : Announces the Results of Its Rights Offering
November 20, 2017 at 05:55 pm EST
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KKR Income Opportunities Fund (NYSE: KIO) (the “Fund”) today
announced the results of its transferable rights offering (the “Offer”).
The Offer commenced on October 19, 2017 and expired on November 17, 2017
(the “Expiration Date”). The Offer entitled the rights holders to
subscribe for up to an aggregate of 5,085,079 common shares of
beneficial interest of the Fund (“Common Shares”). The
subscription price was $14.87 per Common Share, which was equal to 82%
of the Fund’s net asset value (“NAV”) per Common Share at the
close of trading on the New York Stock Exchange (“NYSE”) on
the Expiration Date which was greater than the formula of 90% of the
average of the last reported sales price of a Common Share on the NYSE
on the Expiration Date and each of the four (4) immediately preceding
trading days. The Offer was over-subscribed. Common Shares will be
issued promptly after completion and receipt of all shareholder payments
and the pro-rata allocation of Common Shares in respect of the
over-subscription privilege.
The Fund is a diversified, closed-end management investment company. The
Fund’s primary investment objective is to seek a high level of current
income with a secondary objective of capital appreciation. Depending on
current market conditions and the Fund’s outlook over time, the Fund
seeks to achieve its investment objectives by employing a dynamic
strategy of investing in a targeted portfolio of loans and fixed-income
instruments of U.S. and non-U.S. issuers and implementing hedging
strategies in order to seek to achieve attractive risk-adjusted returns.
The Fund invests primarily in first- and second-lien secured loans,
unsecured loans and high-yield corporate debt instruments of varying
maturities, which may be rated investment grade or below investment
grade. The Fund’s investments in below investment grade loans, below
investment grade fixed-income instruments and debt instruments of
financially troubled companies are considered speculative and are often
referred to as high yield or “junk” securities. Shares of closed-end
funds frequently trade at a discount to NAV. The market price of the
Fund’s Common Shares is determined by a number of factors, many of which
are beyond the control of the Fund.
The Fund’s investment adviser is KKR Credit Advisors (US) LLC (the “Adviser”).
The Adviser is a Delaware limited liability company founded in August
2004. The Adviser, together with its relying advisers, participating
affiliates and other affiliated entities are collectively referenced as
“KKR Credit.” KKR Credit had $41.3 billion in assets under management as
of September 30, 2017, managed on a discretionary basis.
This document is not an offer to sell any securities and is not
soliciting an offer to buy any securities in any jurisdiction where the
Offer or sale is not permitted. This document is not an offering,
which can only be made by a prospectus. Investors should consider the
Fund’s investment objectives, risks, charges and expenses carefully
before investing.
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KKR Income Opportunities Fund (Fund) is diversified, closed-end management investment company. The Fundâs primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. The Fund seeks to achieve its investment objectives by employing a dynamic strategy of investing in a targeted portfolio of loans and fixed-income instruments of U.S. and foreign issuers and implementing hedging strategies in order to achieve attractive risk adjusted returns. The Fund will invest at least 80% of its managed assets in loans and fixed-income instruments or other instruments, including derivative instruments, with similar economic characteristics. The Fund seeks to invest primarily in first and second lien secured loans, unsecured loans, and high-yield corporate debt instruments of varying maturities. KKR Credit Advisors (US) LLC serves as the investment adviser of the Fund.