Sun Microsystems registers $700 million in convertibles for trading

By Sheri Kasprzak

New York, May 10 - Sun Microsystems, Inc. has registered for trade $700 million in senior convertible notes.

As previously reported, KKR PEI Solar Holdings I, Ltd.; KKR PEI Solar Holdings II, Ltd.; and Citibank, NA bought $350 million of 0.625% notes due Feb. 1, 2012 and $350 million of 0.75% notes due Feb. 1, 2014. The notes were issued in January.

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 $10.0625 each, a 75% premium to the Jan. 22 closing stock price.

Sun Microsystems, based in Santa Clara, Calif., develops network computing technologies.

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