KKR Real Estate Finance Trust has priced its previously announced private offering of $125.0 million aggregate principal amount of 6.125% convertible senior notes due May 15, 2023.
The company has also granted to the initial purchasers an option to purchase up to an additional $18.8 million aggregate principal amount of the notes.
The notes will bear interest at a rate of 6.125% per year, payable semi-annually in arrears on May 15 and Nov. 15 of each year, beginning Nov. 15.
The initial conversion rate for the notes is 43.9386 common shares per $1,000 principal amount of notes. The offering is expected to close May 18, subject to customary closing conditions.
KKR intends to use the net proceeds to acquire its target assets.