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KKR completes $26 billion First Data takeover
NEW YORK (Reuters) - Payment processor First Data Corp FDC.N said on Monday that private equity firm Kohlberg Kravis Roberts & Co KKR.UL completed its $26 billion purchase of the company, closing the book on one part of the closely watched deal.
Michael Capellas will be First Data's new chairman and CEO, replacing Ric Duques. Capellas was previously CEO of MCI and president of Hewlett-Packard Company. After the market closes, First Data will no longer be traded on the New York Stock Exchange.
Closing of the deal, however, does not mean its debt financing is fully funded. Financing for the leveraged buyout came under pressure this month, as the credit crunch made investors lukewarm and forced banks to scramble for ways to offload the $24 billion in debt financing.
But investors appear to be warming to the offering, as the company received more than $7 billion in orders for its $5 billion leveraged buyout loan that was marketed late last week, a source close to the financing said on Thursday.
First Data also announced several new management appointments.
The company said all of its operations in the United States will be led by Edward Labry and will combine its commercial services and financial institution services segments.
(Reporting by Michael Flaherty)
