By Sheri Kasprzak
New York, Jan. 29 - Sun Microsystems, Inc. released the particulars on its previously announced $700 million private placement of senior convertible notes.
KKR PEI Solar Holdings I, Ltd.; KKR PEI Solar Holdings II, Ltd.; and Citibank, NA bought $350 million in 0.625% notes due Feb. 1, 2012 and $350 million in 0.75% notes due Feb. 1, 2014.
The investors received warrants for a total of 97,053,726 shares. Half of the warrants, issued with the 2012 notes, are exercisable at a $9.20 each, or a 60% premium to the company's Jan. 22 closing stock price of $5.75. The other half of the warrants, issued with the 2014 notes, are exercisable at a $10.0625 each, a 75% premium to the Jan. 22 closing stock price.
Citibank provided $350 million of financing to KKR for the investment, according to an 8-K filing with the Securities and Exchange Commission while KKR will have voting rights over the notes bought by Citibank.
As long as it owns at least $350 million of notes, KKR will have the right to appoint a director to Sun's board.
A portion of the proceeds will be used to fund convertible note hedge transactions and warrants it entered into concurrently with the private placement with Credit Suisse International.
Sun Microsystems, based in Santa Clara, Calif., develops network computing technologies.
Convertibles due 2012
| Issuer: | Sun Microsystems, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 1, 2012
|
| Coupon: | 0.625% semi-annually
|
| Conversion price: | $7.21
|
| Warrants: | For 48,526,863 shares
|
| Warrant strike price: | $9.20
|
| Contingent conversion: | 130%
|
| Investor: | KKR PEI Solar Holdings I, Ltd.; KKR PEI Solar Holdings II, Ltd.; Citibank, NA
|
| Settlement date: | Jan. 26
|
| Stock symbol: | Nasdaq: SUNW
|
| Stock price: | $6.33 at close Jan. 26, $5.75 at close Jan. 22
|
|
|
| Convertibles due 2014
|
| Issuer: | Sun Microsystems, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 1, 2014
|
| Coupon: | 0.75% semi-annually
|
| Conversion price: | $7.21
|
| Warrants: | For 48,526,863 shares
|
| Warrant strike price: | $10.0625
|
| Contingent conversion: | 130%
|
| Investor: | KKR PEI Solar Holdings I, Ltd.; KKR PEI Solar Holdings II, Ltd.; Citibank, NA
|
| Settlement date: | Jan. 26
|
| Stock symbol: | Nasdaq: SUNW
|
| Stock price: | $6.33 at close Jan. 26, $5.75 at close Jan. 22
|
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