The New York-based firm, which has so far raised $4 billion for the fund, is tapping it to invest in Seitel Inc., a Houston-based company that provides seismic data to the oil and gas industry, according to a regulatory filing.
The seller is ValueAct Capital LLC, a hedge fund which in 2007 bought the remaining 61 percent of the company it didn’t already own in a deal valued at $780 million.
It’s unclear how much Centerbridge is offering to pay for the company or if ValueAct will be retaining a stake. Executives at Centerbridge, Seitel and ValueAct were not immediately available for comment.
Seitel, which has publicly traded debt, posted cash EBITDA (which it defines as “cash resales and solutions revenue less cash operating expenses … excluding various non-recurring items”) of $21.7 million for the first quarter of 2011, compared to $16.1 million for the same period last year. Revenue for the quarter was $59.5 million, compared to $32.4 million during the first quarter of 2010. The company, founded in 1982, generated $175.6 million in revenue for 2010, up from $115.3 million for 2009.
The investment will come out of Centerbridge Capital Partners II LP, according to the filing. The firm has already raised close to $4 billion for the fund, Buyouts reported earlier this month.
The sale for ValueAct comes out of ValueAct Capital Master Fund LP, according to the filing.
Jeffrey Aronson, formerly a partner at Angelo, Gordon & Co., and Mark Gallogly, formerly a senior managing director at The Blackstone Group, founded Centerbridge Partners in 2006.