(Reuters) — U.S. payment processor First Data Corp filed with U.S. regulators on Monday for an initial public offering of common stock, setting up an exit for its private equity owner KKR & Co LP (KKR.N) following one of the largest leveraged buyouts ever.
KKR took First Data private for about $29 billion in 2007. As one of the mega leveraged buyouts that came to epitomize the credit binge preceding the 2008 financial crisis, it proved a challenging investment for
KKR, as profits were overwhelmed by the large amount of debt it put on the company.
But First Data has been in the midst of a rebound since it hired former JPMorgan Chase & Co (JPM.N) executive Frank Bisignano in 2013 as CEO. Last year, KKR doubled down on the company and led a $3.5 billion investment equity round.
Atlanta-based First Data said on Monday it would use proceeds from the IPO to reduce its $21.1 billion debt pile.
First Data has three major business lines, including point-of-sale services, which its in largest unit, as well as credit card and lending solutions. It also runs the STAR Network, an interbank system that connects ATMs and debit card processing around the world and provides security services.
It processed 28 percent of global e-commerce last year.
First Data which reported revenue of $2.7 billion and a net loss of $112 million for the first quarter ended March 31, set a nominal fundraising target of $100 million in its filing with the U.S. Securities and Exchange Commission.
The amount of money a company says it plans to raise in its first IPO filing is usually a placeholder used to calculate registration fees. The final size of the IPO could be different.