Business Context and Reporting Period
Company: KKR Real Estate Finance Trust Inc. (KREF)
Filing Type: Form 8-K (Current Report)
Date of Report: June 2, 2022
Event: Entry into a Material Definitive Agreement for an underwritten public offering of common stock.
Key Financial Metrics
This filing reports proceeds from a specific equity transaction rather than periodic operating results. Key figures include:
- Primary Shares Sold by Company: 2,750,000 shares.
- Secondary Shares Sold by Selling Stockholder: 4,250,000 shares (sold by KKR REFT Holdings L.P.).
- Net Proceeds to Company: Approximately $53.65 million (before expenses).
- Net Proceeds to Selling Stockholder: Approximately $82.92 million (before expenses).
- Over-Allotment Option: Underwriters granted a 30-day option to purchase up to 1,050,000 additional shares from the Company.
Note: The filing text does not provide values for revenue, profit, cash flow, margins, debt, or liquidity metrics as this is a transaction-specific report.
Material Changes
The primary material change is the increase in the Company's share count and capitalization resulting from the issuance of 2,750,000 primary shares. The Company will not receive proceeds from the sale of the 4,250,000 secondary shares by the Selling Stockholder.
Guidance, Outlook, and Use of Proceeds
Use of Proceeds: The Company intends to use the net proceeds from the Primary Shares to:
- Originate, acquire, and finance target assets consistent with its investment strategies and guidelines.
- Fund general corporate purposes.
Management Commentary: The filing confirms the execution of the Underwriting Agreement with Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC as representatives. No specific forward-looking guidance or risk factors beyond standard transaction disclosures are detailed in this excerpt.
Investor Verification Checklist
- Verify the final closing price per share to confirm the total capital raised.
- Confirm whether the underwriters exercised the 30-day option to purchase the additional 1,050,000 Option Shares.
- Review the full Underwriting Agreement (Exhibit 1.1) for specific terms, lock-up periods, and expense allocations.
- Assess the impact of the secondary sale on the Selling Stockholder's (KKR REFT Holdings L.P.) remaining ownership percentage.