KKR Financial Holdings LLC, a debt fund managed by private equity firm
The notes, which pay a 7 percent coupon, were issued in July 2007 by KKR Financial and trustee Wells Fargo, according to a regulatory filing on Friday. KKR Financial will pay accrued interest through June 8, when the exchange took place.
KKR Financial in March reported a $1.2 billion quarterly loss, reflecting losses and writedowns on loans and other assets. At the time, it said it probably would not pay a dividend this year.
The shares issued represent less than 1 percent of KKR Financial’s outstanding stock.
(Reporting by Joseph A. Giannone; editing by John Wallace)