KKR is offloading another chunk of First Data Corp, the payment processor it acquired more than a decade ago.
KKR is selling 64 million shares of First Data, according to an Aug 13 SEC filing. This could jump to 73.6 million shares if underwriters on the deal exercise the green shoe.
At $24.05 a share, the proposed maximum offering price for the secondary, KKR could make $1.8 billion on the sale.
The New York firm will see its holding drop to 364.4 million shares from 438 million, assuming the green shoe is exercised. Its stake will fall to 39 percent of the common stock and 86 percent of the voting power from 47 percent and 89 percent respectively, the filing said.
First Data is not receiving any proceeds from the sale.
The deal for First Data, New York, is a bellwether for the payments industry and for private equity. KKR acquired First Data in 2007 for $29 billion. The deal was one of the largest during the PE boom of 2005 to 2007.
The transaction was also considered an albatross for KKR for much of its holding until First Data finally became profitable in 2015. It went public that year.
This isn’t the first time KKR has sold a stake. In September 2017, KKR sold 97.75 million shares of First Data in a secondary, including 12.75 million in a greenshoe.
At $17.17 a share, KKR made about $1.7 billion. This secondary knocked KKR’s stake in First Data to 438 million shares, or roughly 48 percent of the common stock and 89 percent of the voting.
The company has been acquisitive. Last year, First Data bought BluePay for $760 million and CardConnect for $750 million in separate transactions.
Action Item: Contact First Data CEO Frank Bisignano at +1 800-735-3362