Thu, Sep. 17, 7:45 AM
- KKR-owned oil and gas driller Samson Resources filed for Chapter 11 bankruptcy protection last night to carry out a debt-cutting plan reached with key lenders who will assume control of the company.
- The action was anticipated a month ago when a restructuring plan reportedly was finalized.
- Lenders agreed to cut Samson's obligations by swapping the $1B they are owed for nearly all newly issued stock, and will invest $450M in the company.
- The restructuring plan must be approved by the U.S. Bankruptcy Court in Wilmington, Del.
Fri, Sep. 11, 5:05 PM
- KKR and Apollo Global Management (NYSE:APO) are seeking to acquire GE’s inventory finance arm, Bloomberg reports.
- The buyout firms made bids two weeks ago for GE Capital Commercial Distribution Finance, a unit with $11B in assets, according to the report, which also says GE could select a buyer for the unit by the end of the month.
- The business is among a batch of four commercial lenders with a combined $40B in assets that GE began auctioning in June as part of the company’s refocus on manufacturing; GE’s transportation finance division was sold yesterday to Bank of Montreal.
Wed, Sep. 9, 4:06 PM
- The company plans to seek at least $2.5B in what would be the biggest IPO of the year, reports Bloomberg.
- First Data (Pending:FDATA) filed IPO plans in July without specifying timing or a fundraising target.
- It's biggest equity bet ever, KKR eight years ago took First Data private for $29.8B.
- Previously: KKR's First Data files for IPO (July 20)
Wed, Sep. 9, 7:55 AM
- Started in 1997 by Paul Marshall and Ian Wace, London-based Marshall Wace has over $22B in AUM. KKR says the purchase will "significantly scale" its presence in hedge fund offerings.
- Under the cash and stock deal which should close this year, KKR will acquire a 24.9% stake in firm, with options which could increase ownership to 39.9% over time. Other details weren't disclosed.
- The purchase is expected to be immediately accretive to KKR's after-tax distributable earnings per unit and after-tax ENI per unit.
- Source: Press release
Mon, Aug. 24, 8:21 AM
- Private-equity firms have gathered into three separate packs to get enough juice to bid up to $6B on the South Korean business of Tesco (OTCPK:TSCDY), Reuters reports, in what could be Asia's biggest P-E deal ever.
- A combination of KKR and Affinity Equity Partners is in one group; Carlyle Group (NASDAQ:CG) and GIC are another; and MBK Partners will look for funding from South Korea's National Pension Service to pursue it.
- Divesting its South Korean business, Homeplus, would be the biggest move the chain has made as it tries to reverse a decline resulting from an accounting scandal.
- The Homeplus unit has annual revenue of about $5.9B. Final bids for the business are due today. Along with pretty much everything else, Tesco shares are down 3.5% in London.
- Carlyle Group is down 1.1% and KKR down 3.8% in premarket trading.
Wed, Aug. 19, 3:24 PM
- "KKR levered their energy bets to the hilt and ended up in the woodshed," says University of Michigan professor Erik Gordon.
- Samson Resources is set to file for bankruptcy protection by Sept. 15. Combined with last year's bankruptcy of Energy Future Holdings, it could cost KKR's investors about $5B.
- As a group, P-E firms since the middle of last year have seen about $17B in market cap erased from public energy producers they own, according to Bloomberg.
- KKR's $17.6B 2006 Fund LP put about $3B into the Energy Future and Samson LBOs, and KKR itself invested about $700M. A group of KKR's largest fund investors separately put up the remainder of the money for the P-E firm's stakes in those companies.
- Even with the two major stumbles, the fund has produced an annualized return of 9% after fees.
- Another $900M fund which began raising money in 2010 to invest in producing oil and gas operations has a minus 39% annualized return after fees, and a $2B fund which completed fundraising last year is now valued at 8.5% below investment costs.
- KKR hasn't made any new oil and gas private equity investments in North America since January 2014.
Tue, Aug. 18, 7:51 AM
- Buyout firms are dominating the bidding at Airbus's (OTCPK:EADSY) defense asset auction, according to Bloomberg.
- Carlyle (NASDAQ:CG), KKR and Blackstone (NYSE:BX) are among private-equity firms that bid in the first stage of the auction. Rheinmetall (OTCPK:RNMBY) and Thales (OTC:THLEY) also submitted proposals by a July deadline.
- The operations, which comprise Airbus’s defense sensors and border security businesses, are said to have operations with 2015 revenue estimated at €1.1B.
Fri, Aug. 14, 6:20 PM
- KKR -6.1% AH after Dow Jones reports Samson Resources plans to file for chapter 11 bankruptcy by mid-September after finalizing a restructuring plan with key creditors today.
- The move would wipe out the ~$4.1B investment of KKR and its partners, which led a $7.2B leveraged buyout of Samson in 2011 in the biggest-ever such deal for an oil and gas producer.
- Samson, which is primarily a natural gas producer, has lost more than $4.5B since the buyout, including a $490M loss during Q1, the most recent period for which it has reported results.
Mon, Aug. 10, 6:21 PM
- Samson Resources is close to entering an agreement with its lenders that will put it into bankruptcy court as soon as Aug. 15, Bloomberg reports, wiping out the $4B investment made by the KKR-led group that acquired the business in a $7.2B deal in 2011.
- Samson is said to be talking with loan holders led by Silver Point Capital and Cerberus Capital to iron out details on a proposal that would give the company a ~$300M loan to fund operations during Chapter 11 proceedings.
- If a restructuring plan is not complete by Aug. 15, when a $110M interest payment comes due on its bonds, Samson reportedly would skip the payment and continue talks during a 30-day grace period.
Thu, Jul. 23, 8:24 AM
Thu, Jul. 23, 8:21 AM
- Q2 economic net income of $839.9M vs. $501.6M a year ago. ENI after taxes per share of $0.88 vs. $0.57.
- Distributable earnings of $491.M or $0.42 per share vs. $701M and $0.67 one year ago.
- AUM of $101.6B; Fee-paying AUM of $83.7B.
- Private Markets segment revenue of $1B vs. $642.9M a year ago. Fair value of P-E portfolio up 7.4% for the quarter, up 11.8% in H1. ENI of $666.2M vs. $376.2M.
- Public Markets segment revenue of $188.2M vs. $157.2M a year ago. ENI of $136.6M vs. $105.6M. Strong gains were seen across a number of the company's public holdings, including HCA which gained 21% for the quarter.
- Conference call at 10 ET
- Source: Press release
- KKR +1.7% premarket
Wed, Jul. 22, 5:30 PM
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Wed, Jul. 8, 7:52 AM
Mon, Jun. 29, 12:00 PM
- KKR (KKR -0.9%) agrees to pay nearly $30M to make the SEC go away in its investigation into so-called "broken deal" expenses. The SEC charged that the costs were all borne by KKR's funds' limited partners, but not co-investors (which included KKR executives).
- In reaching the settlement, KKR neither admitted nor denied the charges, but notes the deal relates to past, not current, practices. The SEC said the "one-sided" arrangement lasted for a six-year period ending in 2011.
- Source: Dan Primack
Fri, Jun. 26, 7:24 AM
- Results at Australia's largest supermarket chain haven't been so hot of late, and its CEO has announced his retirement, but the stock closed higher by 3.8% in Sydney today on a rumor KKR is ready to bid for the company.
- A buyout could be the largest cross-border P-E deal ever, given Woolworths' current enterprise value of about $30B, according to Bloomberg. Takeovers or large Aussie companies have averaged a multiple of 1.18x enterprise value.
- In 2006, KKR tried but failed to buy Woolworths' largest competitor, Cole Group.
Tue, Jun. 23, 9:18 AM
- 3M (NYSE:MMM) has agreed to acquire Capital Safety from KKR for a total enterprise value of $2.5B, including the assumption of approximately $0.7B of debt, net of cash acquired. The deal is expected to close in the third quarter.
- On a GAAP reported basis, 3M estimates the acquisition to be $0.04 dilutive to earnings in the first 12 months following completion of the transaction. Excluding adjustments and one-time expenses, 3M estimates the acquisition to be $0.12 accretive to earnings over the same period.
- Capital Safety, a provider of fall protection equipment, had approximately $430M in sales for its fiscal year ended March 31, 2015.
- KKR +0.7% premarket
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