Kinder Morgan files for IPO of up to $1.5 billion
NEW YORK (Reuters) - Carlyle-backed pipeline company Kinder Morgan Inc, which was taken private in a $14.6 billion management buyout in 2007, on Tuesday filed with U.S. regulators for an initial public offering of up to $1.5 billion.
It is the latest in a string of private equity-backed portfolio companies to move to go public, such as Carlyle-backed government consulting firm Booz Allen Hamilton (BAH.N).
The window for private equity IPO exits was shut during the financial crisis but cracked open late last year. Private equity firms have a large number of companies to sell in coming years as they look to profit from buyouts done during the boom years of the last decade.
However, some have run into problems; such as Harrah's Entertainment Inc, which pulled a planned $500 million offering on Friday, citing difficult market conditions.
Some potential private equity-backed IPOs which have already filed, such as retailer Toys R Us Inc, may sit it out until next year.
Investors historically have been more critical of private equity-backed companies, which typically have higher debt.
Kinder Morgan, backed by Carlyle Group CYL.UL and Goldman Sachs Group Inc's (GS.N) buyout fund, said all of the common stock in the offering will be sold by existing investors, including Carlyle, Goldman, Highstar Capital and Riverstone Holdings.
Kinder Morgan said it would not receive any proceeds from the offering.
Goldman Sachs and Barclays Capital (BARC.L) are joint book-running managers for the offering.
Reuters reported in July that the pipeline company was preparing for the offering, citing a source familiar with the matter.
WASHINGTON - U.S. private-sector hiring rose in November at the fastest clip in a year, suggesting the labor market was improving enough for the Federal Reserve to soon start trimming its bond purchases.
- U.S. small businesses boosted borrowing in October to its highest level in over six years, an index showed on Tuesday, fresh evidence that the budget battle that shut the federal government for 16 days did little to derail underlying economic growth.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.