KKR's First Data Completes Awaited IPO, Raises $2.6B
October 16, 2015
KKR-backed First Data completed its long awaited IPO yesterday, raising almost $2.6 billion in the biggest public debut of the year. Listing on the NYSE under the symbol FDC, the payment processor offered 160 million shares for $16 each, pricing lower than its previously expected $18 to $20 range. Only 63.6 million shares traded in the market yesterday, closing down 1.6% at $15.75 and garnering a market cap of $13.8 billion.
The IPO market has struggled as of late. We've seen notable IPOs price lower than expected or delay all together, including the postponement of the Cerberus Capital Management-backed Albertsons offering earlier this week. Thus, the price action and subdued volume in First Data shares on Thursday wasn't very surprising. Proceeds from the offering will be used to pay down the company's heavy debt load, including the redemption of all $510 million of its 11.25% senior unsecured notes due 2021 and $1.6 billion of its 12.625% senior unsecured notes due the same year. Backed by KKR since a roughly $29 billion public-to-private buyout in 2007, First Data processed 74 billion global transactions in 2014 worth a combined $1.7 trillion.