First Data Corp will receive a $3.5 billion injection from existing and new investors, it said on Thursday, as its private equity owner, KKR & Co LP, tries to offer debt relief to the one of the world's largest leveraged buyouts. The investment, in the form of a private equity placement, is the most dramatic move yet by KKR. It frees some of First Data's cash flow from the debt burden it took on as the result of its $29 billion leveraged takeover in 2007.The big payment processor has been stifled by interest payments, generating a loss of $732.2 million in the 12 months to the end of March, as most of its cash flow went to service its net debt of $24.3 billion.First Data said it will receive $1.5 billion from existing investors and $2 billion from new investors that include unnamed pension funds, mutual funds, asset managers and wealthy individuals. KKR provided about $1.2 billion, including $500 million from its 2006 private equity fund and $700 million from its own balance sheet.KKR and a group of banks including Goldman Sachs Group Inc and Citigroup Inc had committed $7.2 billion to the 2007 leveraged buyout, according to regulatory filings. As early as last year, KKR had its investment in First Data marked at 70 cents on the dollar.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. Shares of C remained unchanged at $47.93. In the past year, the shares have traded as low as $45.06 and as high as $55.28. On average, 21960700 shares of C exchange hands on a given day and today's volume is recorded at 5500.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS remained unchanged at $169.86. In the past year, the shares have traded as low as $148.71 and as high as $181.13. On average, 2952670 shares of GS exchange hands on a given day and today's volume is recorded at 0.
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