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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (3336)	2/20/2008 6:28:33 AM
From: RockyBalboa	Respond to of 6370

19-Feb-2008 Other Events Item 8.01 Other Events. On February 15, 2008, KKR Financial Holdings LLC (the "Company") entered into an Extension Amendment Agreement (the "Amendment Agreement") with the holders of non-recourse secured liquidity notes (the "SLNs") issued by two asset-backed secured liquidity note conduit facilities (the "Facilities") to allow for restructuring discussions. On October 18, 2007, the Company announced that it had consummated a restructuring to extend the Facilities (the "October Restructuring"). Pursuant to the terms of the October Restructuring, the original maturity date of the SLNs was extended so that approximately 50% of the principal balance was due on February 15, 2008 (the "February Maturity Date") and the remaining principal balance is due on March 13, 2008. Pursuant to the Amendment Agreement, the February Maturity Date has been extended to March 3, 2008 (the "Extension Period"). The holders of a majority of the SLNs have the right to terminate the Extension Period upon one business day prior written notice. Upon the expiration or termination of the Extension Period without further agreement on restructuring, the SLNs will become due and payable. In connection with the October Restructuring, certain holders of the SLNs agreed to receive an in-kind distribution of the mortgage-backed securities serving as collateral for the Facilities in satisfaction of the outstanding principal balance of their SLNs. In connection with the Amendment Agreement, certain holders of SLNs have been given the option during the Extension Period to receive at their election an in-kind distribution of the mortgage-backed securities serving as collateral for the Facilities in satisfaction of the outstanding principal balance of their SLNs. Upon expiration or termination of the Extension Period, the remaining holders of SLNs have the right to receive at their election an in-kind distribution of the mortgage-backed securities serving as collateral for the Facilities in satisfaction of the outstanding principal balance of their SLNs.

To: Bill Wexler who wrote (3336)	3/6/2008 7:55:14 AM
From: RockyBalboa	Respond to of 6370

AP Carlyle Capital Receives Default Notice Thursday March 6, 7:21 am ET Carlyle Capital Receives Default Notice and Investment Firm Faces Mounting Margin Calls NEW YORK (AP) -- Investment firm Carlyle Capital Corp., an investment fund managed by Carlyle Investment Management, said late Wednesday it has been the subject of margin calls, with one creditor issuing a notice of default. Carlyle initially received four margin calls totaling $60 million and was able to meet them. It then faced an additional seven calls on Wednesday totaling more than $37 million. It has met three of those margin calls thus far, but also received one notice of default. The company said it expects to receive at least one additional default notice among the calls it has yet to meet. Margin calls force borrowers to repay loans or put up more collateral to secure them. Investors in mortgage-backed debt and other securities have faced margin calls in recent weeks as the market for the securities and debt severely deteriorated. Credit markets had already been tight, with limited liquidity available since the middle of 2007, but have worsened in recent weeks. Thornburg Mortgage Inc., a mortgage originator and investor, is facing similar calls and default notices from its creditors as the price of securities and debt has plummeted in the secondary markets. Since August, Carlyle Capital has sold about $1 billion in assets to improve its liquidity and reduce its risk.

To: Bill Wexler who wrote (3336)	3/7/2008 7:48:10 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

More Trouble at Carlyle Capital Friday March 7, 7:04 am ET Carlyle Capital Corp. Ltd. Reports Additional Margin Calls, Considering 'All Options' LONDON (AP) -- Lenders to Carlyle Capital Corp. Ltd. have begun to liquidate securities held in its $21.7 billion portfolio and the fund said Friday it was considering "all available options." The margin calls against Carlyle portend an ominous development one day after the fund was served with default notices, convulsing already skittish markets. Shares in the fund, a listed mortgage-bond fund managed by private equity firm the Carlyle Group, were suspended Friday. The stock closed down Thursday nearly 60 percent at $5.00 on Euronext Amsterdam. Carlyle Capital said it received additional margin calls and default notices Thursday from banks that help finance its portfolio of residential mortgage-backed securities. It said it may not be able to meet the increased requirements. The fund said it was unable to meet margin calls from four banks Thursday, raising fears that its entire portfolio could be unwound. Securities have dropped sharply in recent weeks as banks pull back on their lending, forcing investment vehicles and funds like Carlyle to dump assets. In Friday's statement, Carlyle Capital said it had received "substantial additional margin calls and additional default notices from its lenders." It also said that lenders were selling off securities held as collateral. Risk premiums on residential mortgage-backed securities widened Thursday, stocks fell, and U.S. Treasurys rallied as investors sought safety. Carlyle Capital said Friday it is in continued discussions with its lenders about its financing situation, but warned shareholders that the additional margin calls and increased collateral requirements to keep funding in place could quickly deplete its liquidity and impair its capital. Carlyle Capital leverages its $670 million equity 32 times to finance a $21.7 billion portfolio of residential mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae. To do this, it enters into repurchase agreements with banks, which involve posting the mortgage securities as collateral in exchange for cash. If the value of the security held as collateral falls, the lender will ask for more collateral -- a "margin call" -- in order to secure the loan. If the borrower does not meet the margin call by putting up more collateral, the lender may sell the security. highly leveraged funds have become increasingly vulnerable because their cash cushions are tiny compared with actual assets. Sudden price moves in the underlying assets can send margins spiraling, quickly depleting a fund's cash. Carlyle Capital said Friday that, as of last week, it believed it had sufficient liquidity. It had reassured investors on its funding situation in is annual report Thursday, saying it had $2.4 billion in unused repo lines and a $130 million (84.86 million euros) liquidity cushion. "In the past several days there has been a rapid and severe deterioration in the market for U.S. government agency AAA-rated residential mortgage-backed securities," Carlyle Capital said Friday. The fund is managed by a unit of Washington D.C.-based Carlyle Group. It initially was launched as a private fund in 2006, then floated on Euronext Amsterdam in July. Within weeks of the listing, it was forced to hit up the Carlyle Group for $200 million in emergency funding and it sold a $900 million loan portfolio at a loss to meet margin calls. Last week, Chief Executive John Stomber said the fund "can and will do better" after the difficulties in 2007. Net asset value per share sank 30 percent last year, to $13.11 at Dec. 31 from $18.65 shortly before the listing. The stock, which had been offered at $19, also performed poorly, losing 37 percent before Thursday's announcement.