Today, 10:21 AM
- General Electric (GE -0.7%) has completed the sale of its Australia and New Zealand consumer finance business, representing aggregate ending net investment of approximately $4.3B, to a consortium made up of Varde Partners, KKR (KKR -0.2%) and Deutsche Bank (DB +0.6%).
- "Combined with the recently announced agreement to sell our commercial lending business in A&NZ, this is a big step in the complete exit of GE Capital from the region," said Keith Sherin, GE Capital chairman and CEO.
- Previously: Investor group to buy GE Capital consumer finance arm for $6.3B (Mar. 15 2015)
Mon, Nov. 23, 9:38 AM
- Airbus (OTCPK:EADSY) aims to pick a buyer for its defense electronics unit by the end of 2015 as part of its plan to dispose of assets with combined revenues of around €2B, Chief Executive Tom Enders told Frankfurter Allgemeine Sonntagszeitung.
- The final offers for the defense electronics business, which could fetch a price of up to €1B, are due early next month.
- Sources told Reuters that Rheinmetall (OTCPK:RNMBY) has tied up with buyout group Blackstone (BX -1%) to bid for the unit, rivaling private equity groups Cinven, Carlyle (CG +0.5%) and (KKR +0.3%) as well as French peer Thales (OTC:THLEY).
Mon, Nov. 2, 3:14 PM
- Leading the way higher for the roughed-up sector are alternative players like Och-Ziff Capital (OZM +10.1%) and KKR (KKR +9.3%). There's also Blackstone (BX +4.3%), Fortress (FIG +3.2%), Oaktree (OAK +4.2%), and Carlyle Group (CG +7.4%).
- Traditional names like Manning and Napier (MN +11.7%), Affiliated (AMG +2.6%), Waddell & Reed (WDR +2.7%), Virtus Investment (VRTS +3.7%), and Legg Mason (LM +2.3%).
- Many of these names have reported Q3 already, and the results have mostly disappointed. On tap for tomorrow is Och-Ziff.
Thu, Oct. 29, 5:58 PM
- The CEO of KKR-backed Samson Resources plans to resign, a lawyer for the bankrupt oil and gas producer told a judge today, as a restructuring plan announced in August has unraveled and the company and lenders negotiate for new terms to refinance.
- The restructuring deal is in peril due to tumbling natural gas prices, the lawyer says, adding that CEO Randy Limbacher will continue in his role until December.
- "The initial [agreement] can be terminated at any moment," as milestones in the deal have not been met, the lawyer said according to Reuters.
Wed, Oct. 28, 9:12 AM
Wed, Oct. 28, 7:38 AM
- Q3 economic net loss of $286M or $0.37 per unit vs. a profit of $508.7M or $0.50 one year ago. Distributable earnings of $349.1M or $0.35 per unit vs. $504.8M and $0.45.
- The company moves to a fixed distribution policy, with the payout to be $0.16 per quarter beginning for Q4 (Q3 payout is $0.35). This would be an annualized yield of 3.6%. Previous policy had KKR paying out 75-80% of distributable earnings.
- As part of the new capital management strategy, a $500M buyback program is launched, good for about 6% of the float at last night's regular session close. It appears to be the first-ever buyback from a publicly-traded P-E firm.
- Shares -6.1% premarket
- Previously: KKR misses by $0.07, misses on revenue (Oct. 27)
Tue, Oct. 27, 5:54 PM
Mon, Oct. 26, 5:35 PM
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Wed, Oct. 21, 3:13 PM
- KKR is raising its first fund aimed at private tech companies, reports Dan Primack, and is marketing the vehicle to only a select group of investors.
- The move comes as clients had asked how they could participate alongside KKR in a number of off-balance sheet deals the P-E firm has done (Sonos, FanDuel, Identity among them).
- There's no specific target size for the new fund, but KKR itself will reportedly investment at least $200M, or more than 30% of the total (larger than a typical commitment by a general partner).
Thu, Oct. 15, 10:29 AM
- After a disappointing IPO which priced at the bottom of its expected $16-$17 range (which had been cut from $18-$20), First Data (NYSE:FDC) is at $15.75 in early action.
- At $16 per share, First Data's market value is about $14B vs. the near-$30B KKR paid for it in 2007.
- Nevertheless, the $2.56B raise is 2015's largest IPO.
- Payment processing upstart/competitor Square filed for its own IPO yesterday.
- Previously: First Data prices IPO at $16 (Oct. 14)
- Previously: First Data reportedly cutting IPO price range (Oct. 14)
Wed, Oct. 14, 2:52 PM
- There's apparently muted interest for the First Data (Pending:FDC) IPO as the deal price has been cut to $16-$17 per share from $18-$20, according to Barron's. The sale is expected to price later today.
- At issue for First Data is a still-heavy debt load and little valuation discount to smaller, faster-growing payments-and-processing names like Vantiv (NYSE:VNTV), Total Systems Services (NYSE:TSS), Global Payments (NYSE:GPN), and Heartland Payments Systems (NYSE:HPY). It's a hot sector and the whole group is up sharply this year.
- First Data would still raise $2.6B at the midpoint of the reportedly revised range, with a valuation of about $15B, and more than $18B in debt still outstanding after the IPO.
- Bernstein's Lisa Ellis: “Our perspective on First Data’s business outlook, in brief — chronic underperformer in a market with strong secular growth, on a slow, steady improvement path.”
- KKR took First Data private in a top-ticker of a deal in 2007 for $30B.
- Previously: First Data about to go public (Oct. 14)
Wed, Oct. 14, 3:22 AM
- First Data Corporation is expected to price its initial public offering today in what could be the largest IPO of the year.
- The KKR-backed company, which processes more than 40% of electronic payments in the U.S., has been marketing 160M shares for $18-$20 apiece, indicating an offering size of $3B (at the midpoint) and a valuation of $16.7B.
- The stock, listed on the NYSE under ticker symbol FDC, will begin trading on Thursday.
- Previously: First Data files S-1 (Oct. 01 2015)
Sat, Oct. 3, 5:49 PM
- Laureate Education (LAUR) files for an $100M IPO. The deal size could eventually be pushed to as high as $1B, according to Renaissance Capital.
- The for-profit education company reported revenue of $4.414B in 2014 and operating income of $299.5M. Also of note, Laureate Education has a close prior association with Bill Clinton and the Clinton Global Initiative.
- KKR (NYSE:KKR) was a lead investor in the group that took Laureate private in 2007.
- SEC Form S-1
Thu, Oct. 1, 7:35 AM| Thu, Oct. 1, 7:35 AM | Comment!
Mon, Sep. 21, 3:38 PM
- Earlier in September, Bloomberg reported payment procession gorilla First Data (Pending:FDATA) would aim to raise at least $2.5B in an IPO coming as soon as this month. The WSJ today says the number is $3B and a filing with details could come today, with trading maybe starting by mid-October.
- The IPO is expected to value the company at between $20B and $25B, says the Journal, maybe beginning to offer a positive ROI for KKR which bought the company at the peak of buyout boom for nearly $30B. KKR at one point marked down the value of its investment to as low as $0.60 on the dollar.
- Previously: Bloomberg: First Data IPO could come this month (Sept. 9)
Fri, Sep. 18, 7:29 AM
- IMC Financial Markets has yet to adequately explain why it opened KKR's stock at $10 per share (vs. the previous evening's close of $19.55) amid the market panic of Monday morning on Aug. 24. The stock had been trading at $17-$18 on electronic exchanges prior to the NYSE open.
- Over the five seconds following that $10 open, roughly 476K traded hands at as low as $8 each. By 9:45, the stock was back to $17.50, but for a few minutes the net worths of KKIR co-CEOs Henry Kravis and George Roberts each fell about a $1B. The stock closed at $19.46 last night.
- Despite the crazy opening causing no lasting problems for KKR, executives a the P-E firm aren't pleased and are considering dropping IMC. The SEC is taking a broad look at market open that day.
- Source: WSJ
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