KKR Financial prices $300 million convertible notes to yield 7%, up 30%

New York, July 17 - KKR Financial Holdings LLC priced $300 million of convertible senior notes due 2012 after the close Tuesday, selling them to yield 7% with an initial conversion premium of 30%.

The deal came at the cheap end of talk, which put the coupon at 6.5% to 7% and the initial conversion premium at 30% to 35%.

The conversion price is $32.175 and the conversion ratio 31.0800.

Citigroup is the bookrunner of the Rule 144A transaction. There is a $45 million over-allotment option.

There are no calls or puts. The bonds will be convertible into a combination of cash and KKR common stock or cash only.

KKR Financial Holdings is a San Francisco-based real estate investment trust and specialty finance company.

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