KKR raises $500 million in notes

Kohlberg Kravis Roberts & Co has raised $500 million in senior secured notes. KKR had originally planned to sell $500 million of new common units but later cancelled the plans. Rival firm Blackstone had raised $400 million earlier in the month.

(Reuters) – Private equity firm Kohlberg Kravis Roberts & Co on Wednesday sold $500 million of senior secured notes, according to IFR Thomson Reuters, a month after it canceled plans for an equity offering of the same amount.

Rival Blackstone Group similarly had sold $600 million in a first corporate bond offering in August 2009 after it went public. Blackstone also sold $400 million of senior unsecured notes earlier this month, according to IFR.

KKR’s sale of bonds was two times oversubscribed, a source familiar with the deal said. KKR said it would use the proceeds of the bond offering for general corporate purposes.

KKR had originally planned to sell $500 million of new common units, but canceled those plans shortly after listing on the New York Stock Exchange in the summer. KKR had said it planned to use proceeds of that sale to expand its business and for general corporate purposes.