KKR rises after upsized $2.25 bln convertible stock offering priced

Shares of KKR & Co KKR.N up 1% at $122 before the bell after capital raise exceeds target

Private equity firm late Tues announced pricing $2.25 bln mandatory convertible preferred stock offering with 6.25% annualized dividend

Offering size increased from $1.5 bln

Unless earlier converted by investors, preferred stock will automatically convert on Mar 1, 2028 into between 0.3312-0.4140 KKR common shares, or up to 20% premium

KKR plans to use net offering proceeds to boost stakes in its core private equity portfolio cos, and for general purposes

Morgan Stanley and KKR's capital markets division are jt bookrunners for the offering

KKR shares on Tues fell ~9% to close at $120.78 amid broader retreat in stocks, giving co a ~$107.3 bln market cap, per LSEG data

YTD, shares down 18% vs 3% advance in S&P 500 Financials .SPSY and 1.8% drop in S&P 500 .SPX. Stock notched record high close of $167.07 on Jan 31