NEW YORK, April 20 Kohlberg Kravis Roberts & Co
[KKR.UL] could make its money back on a two-year-old investment
in the debt of Sun Microsystems Inc JAVA.O, which agreed to
be sold to Oracle Corp ORCL.O on Monday.
The private equity firm, whose Amsterdam-listed fund KKR
Private Equity Investors KKR.AS (KPE), invested $700 million
in Sun in January 2007 for convertible senior notes, had
sharply written down the value of its investment.
But under the terms of the investment, a sale or change in
control at Sun would require that the notes be paid to Sun "at
par", plus accrued interest, a person familiar with the matter
KPE received $350 million in financing from a major bank.
One batch of convertible notes worth $350 million, which
pays interest semi-annually at 0.625 percent, is due in 2012,
while the second batch, which pays 0.75 percent, is due in
In its year-end results, KPE reported that it wrote down
the value of the convertible senior notes in Sun by $167.4
KKR did not return calls and emails seeking comment. Oracle
couldn't be reached immediately for comment. Sun declined to
(Reporting by Anupreeta Das; editing by Carol Bishopric)