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KKR invests $700m in convertible senior notes in Sun Microsystems24/01/2007. Source: AltAssets. 
 Sun Microsystems has announced a $700m private placement transaction with KKR Private Equity Investors, the publicly traded fund of Kohlberg Kravis Roberts & Co. The investment will be in the form of $350m of convertible senior notes due in 2012, and $350m of convertible senior notes due in 2014.
The 2012 and 2014 notes will pay interest semi-annually at a rate of 0.625 per cent and 0.750 per cent per annum respectively. The 2012 and 2014 notes will be convertible, at the holder's option during specified periods, at a conversion price of $7.21 per share.
Upon conversion, Sun Microsystems will deliver cash up to the principal amount and, at its option, cash or stock equal to the remaining conversion value, according to a statement. KPE's $700m investment in Sun Microsystems includes financing provided to KPE by a major bank in the amount of $350m.
George R Roberts, a founding member of KKR, said, 'Sun Microsystems is a leader and innovator in the global technology marketplace. Jonathan Schwartz and his team have demonstrated remarkable vision and strong discipline in executing its turnaround strategy. This leadership, coupled with the world-class products and services for which Sun has always been known, underscores the company's ability to sustain its recent momentum and the gains it has made in the marketplace. We are pleased to have the opportunity to pursue this investment through KKR Private Equity Investors in order to help Sun to best capitalise on its substantial growth potential.'
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