Davis Polk advised Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC as joint book-running managers in connection with the offering by KKR Financial Holdings LLC of $258.75 million principal amount of its 8.375% senior notes due 2041 (which included the full exercise of the over-allotment option).

Based in San Francisco, California, KKR Financial Holdings LLC is a specialty finance company that uses leverage with the objective of generating competitive risk-adjusted returns. KKR invests in financial assets consisting primarily of below investment-grade debt.

The Davis Polk corporate team included partner Joseph A. Hall and associates Melissa Glass, Tsz Hin Kwok (not yet admitted) and Kyle D. Bady (not yet admitted). The financial institutions team included partner Margaret E. Tahyar and associates Lena V. Kiely and Anjali Sara Bonner. The tax team included partner Po Sit and associate Arie Rubenstein. Partner Danforth Townley and associate Catherine L. Martin provided ’40 Act advice. Partner Jeffrey P. Crandall and associate Jennifer Freiman provided ERISA advice. Rosemarie Melendez was the legal assistant for the transaction. All members of the Davis Polk team are based in the New York office.