KFN Kkr Financial Holdings Llc

Issuer:

KKR Financial Holdings LLC

Security Description:

7.500% Senior Notes due 2042 (the “Notes”)

Principal Amount:

$100,000,000

Over-allotment Option:

$15,000,000

Trade Date:

March 13, 2012

Settlement Date:

T+5; March 20, 2012

Maturity Date:

March 20, 2042

Interest Payment Dates:

March 20, June 20, September 20 and December 20 of each year, beginning June 20, 2012

Coupon (Interest Rate):

The Notes will bear interest from March 20, 2012 at the rate of 7.500% per year, payable quarterly in arrears.

Public Offering Price:

$25 per Note

Optional Redemption:

The Issuer may redeem the Notes, in whole or in part, at any time on or after March 20, 2017 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to, but excluding, the redemption date.

Listing:

The Issuer intends to apply to list the Notes on the New York Stock Exchange and, if the application is approved, expects trading in the Notes to begin within 30 days after the Notes are first issued.

Use of Proceeds:

The net proceeds from the sale of the Notes are estimated to be approximately $96,390,825* (or approximately $110,918,325* if the underwriters exercise their overallotment option in full), after deducting the underwriting discount and estimated offering expenses. The Issuer intends to use the net proceeds for general corporate purposes.

CUSIP/ISIN:

48248A504 / US48248A5048

Anticipated Ratings**:

BBB- (Stable) (S&P) / BBB (Stable) (Fitch)

Joint Book-Running Managers:

Citigroup Global Markets Inc.

Morgan Stanley & Co. LLC

UBS Securities LLC

Wells Fargo Securities, LLC

Co-Managers:

KKR Capital Markets LLC

RBC Capital Markets, LLC

*

Reflects sales to certain institutions as described in footnote 2 to the cover page of the Preliminary Prospectus Supplement dated March  13 , 2012.

**

Note: An explanation of the significance of ratings may be obtained from the rating agencies. Generally, rating agencies base their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate. The rating of the notes should be evaluated independently from similar ratings of other securities. A credit rating of a security is not a recommendation to buy, sell or hold securities and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning rating agency.