NEW YORK (Standard & Poor's) Jan. 24, 2007--Sun Microsystems Inc. (BB+/Stable/A-3) recently announced a $700 million private placement transaction of senior convertible notes with KKR Equity Investors, L.P. (KKR). In conjunction with or shortly following the close of this bond transaction, a nominee of KKR will be presented for appointment to Sun's board of directors. Standard & Poor's Ratings Services does not expect the proposed transaction to have a current impact on its ratings or outlook for the company. While Sun's funded debt level will increase, so will the company's already substantial net cash position. As of Dec. 31, 2006, Sun had cash and marketable securities balances of $4.8 billion, and total debt (including capitalized operating leases) of about $1.4
