Reuters – PE-Backed Performant Sees IPO at $12-$14

Debt-collection agency Performant Financial Corp. expects its initial public offering of 11.54 million shares to be priced between $12 and $14 each. At the mid-point of the expected price range, the offering will raise about $150 million. Performant is backed by private equity firm Parthenon Capital Partners, which currently holds about 82% stake in the company.

(Reuters) – Debt-collection agency Performant Financial Corp expects its initial public offering of 11.54 million shares to be priced between $12 and $14 each.

At the mid-point of the expected price range, the offering will raise about $150 million.

Performant, which helps government agencies and private companies recover delinquent loans, will offer about 1.9 million shares, while selling shareholders will offer the rest.

Performant, which is backed by private equity firm Parthenon Capital Partners, earned $2.5 million on revenue of $45.9 million for the quarter ended March 31.

Parthenon, which currently holds about 82 percent stake in the company, will own about 57 percent in it after the IPO.

Private equity-backed CKE Inc, which operates the Carl’s Jr and Hardees fast-food chains, also announced its expected IPO price range earlier in the day.

Morgan Stanley and Goldman Sachs are among the underwriters to Performant’s IPO.