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Slide Show: Developments Among Industry’s Largest LBOs

Ten of the largest sponsor-backed industrial giants have been busy in 2011, sister publication Buyouts finds. 

Three of the largest sponsor-backed companies went public again since the first of the year, while others have taken advantage of easy credit conditions to extend debt maturities. Even the troubled Energy Future Holdings Co., facing a claim by a creditor of a techincal default, was able to extend the maturities on $17.8 billion in debt.

A word about our methodology: Our list of biggest deals is derived from a Thomson Reuters database of private equity deals. We chose the largest buyout deals of U.S. companies that file quarterly statements with the SEC. We excluded foreign companies, deals that were predominantly about real estate, companies that no longer have private equity sponsors (as a result of IPOs or strategic sales) and those that do not file 10-Ks.

Here is a roundup of recent developments, based on regulatory filings, company announcements and news reports.

[slideshow]
[slide title=”10 – ARAMARK Corp.“]

ARAMARK Corp.

Sector: Management services

Sponsors: JP Morgan Partners, Goldman Sachs, Thomas H. Lee Partners, Warburg Pincus

Date of LBO: October 2007

Value of LBO at closing: $8.2 billion

Development: Food, facilities and uniform company extended debt in April to 2015 from 2013 and expanded U.S. credit line to $500 million from $435 million.

[slide title=”9 – SunGard Data Systems Inc.“]

SunGard Data Systems Inc.

Sector: Financial technology

Sponsors: Silver Lake Partners, Bain Capital Inc., Blackstone Group LP, Goldman Sachs Capital Partners LP, Kohlberg Kravis Roberts & Co LP, Providence Equity Partners LLC and Texas Pacific Group Inc.

Date of LBO: August 2005

Value of LBO at closing: $11 billion

Development: Software company offered to exchange $1.6 billion of restricted debt due in 2018 and 2020 for freely tradable notes.

[slide title=”8 – Intelsat Corp.“]

Intelsat Corp.

Sector: Satellite services

Sponsors: BC Partners and Silver Lake

Date of LBO: February 2008

Value of LBO at closing: $16 billion

Development: Satellite company filed to issue $2.2  billion of new debt due 2017 to replace existing debt due in 2016 or sooner.

[slide title=”7 – Freescale Semiconductor“]

Freescale Semiconductor

Sector: Semiconductors

Sponsors: The Blackstone Group, Permira, Carlyle Group, TPG

Date of LBO: December 2006

Value of LBO at closing: $17.5 billion

Development: Chipmaker filed in February to raise an undetermined amount of cash in an IPO.

[slide title=”6 – Clear Channel Communications Inc.“]

Clear Channel Communications Inc.

Sector: Radio and TV broadcasting

Sponsors: Bain Capital Partners LLC and Thomas H Lee Partners LP

Date of LBO: July 2008

Value of LBO at closing: $25.9 billion

Development: Broadcaster sold $1 billion of new notes in February with a 2021 maturity

[slide title=”5 – First Data Corp.“]

First Data Corp.

Sector: Data Processing

Sponsors: KKR, Bain Capital, Merrill Lynch Capital

Date of LBO: September 2007

Value of LBO at closing: $27 billion

Development: Payment processor extended loan maturities in April to 2018 on $5 billion of senior term loans

[slide title=”4 – Harrahs Entertainment“]

Harrahs Entertainment

Sector: Media and entertainment

Sponsors: Apollo Management and TPG Capital

Date of LBO: January 2008

Value of LBO at closing: $27.4 billion

Development: Casino operator now called Caesars Entertainment Operating Co. Inc. filed in April to raise $710 million in an IPO, after earlier attempt was withdrawn in November

[slide title=”3 – Kinder Morgan Inc.“]

Kinder Morgan Inc.

Sector: Energy

Sponsors: Goldman Sachs, Carlyle Group, Riverstone and AIG

Date of LBO: May 2007

Value of LBO at closing: $27.5 billion

Development: Pipeline operator raised $2.9 billion in February IPO

[slide title=”2 – HCA Inc.“]

HCA Inc.

Sector: Hospital owner, operator

Sponsors: KKR, Bain Capital and Merrill Lynch Capital

Date of LBO: November 2006

Value of LBO at closing: $32.1 billion

Development: In the buyouts industry’s largest IPO, hospital operator raised $3.8 billion in March.

[slide title=”1 – Energy Future Holdings Corp. (TXU)“]

Energy Future Holdings Corp. (TXU)

Sector: Utilities

Sponsors: Kohlberg Kravis Roberts & Co., TPG, Goldman Sachs, etc.

Date of LBO: October 2007

Value of LBO at closing: $44.4 billion

Development: Natural-gas utility extended the maturities on $17.8 billion of looming debt in April to 2017 from 2014, agreeing to pay higher rates

[/slideshow]