KKR Income Opportunities Fund

As of August 30, 2024, the Acquiring Fund uses leverage through a credit facility and mandatory redeemable preferred stock representing 35% of the Acquiring Fund’s Managed Assets. The Combined Fund expects to use leverage in the same amount and types as the Acquiring Fund. However, there can be no guarantee that the Combined Fund will leverage its assets or, to the extent the Combined Fund utilizes leverage, what percentage of its assets such leverage will represent.

The Acquiring Fund is and the Combined Fund will be permitted to obtain leverage using any form or combination of financial leverage instruments, including through funds borrowed from banks or other financial institutions (

i.e.

, a credit facility), margin facilities, the issuance of preferred shares or notes and leverage attributable to reverse repurchase agreements, dollar rolls or similar transactions. The Acquiring Fund and Combined Fund each may use leverage opportunistically and may choose to increase or decrease its leverage, or use different types or combinations of leveraging instruments, at any time based on the Acquiring or Combined Fund’s assessment of market conditions and the investment environment. There can be no assurance that the Acquiring Fund or Combined Fund will use leverage or that its leveraging strategy will be successful during any period in which it is employed.