(1888PressRelease)
September 07, 2007 - The mooted buyout of credit card data firm First Data will stand as a litmus test for the health of the leveraged buyout sector and the credit market, it has been reported.
This week will see seven banks seek to persuade investors to buy $24 million in bonds and loans to fund the sale of the credit card payments processing company to private equity giant Kohlberg Kravis Roberts.
Henry Duques, chairman of First Data, told the New York Times: "We are basically down to getting ready for a road show. It would be nice if somebody wanted to buy the debt at a reasonable price."
Interest in the outcome of the sale comes as over $330 billion dollars of leveraged buyouts are due to seek financing over the coming months, among them the potential acquisitions of the US student loan provider Sallie Mae and energy firm TXU, according to the newspaper's report.
The First Data deal follows the sale of Home Depot's wholesale supply division, which was almost stymied when banks threatened to walk away.
Following negotiations the deal was closed after Home Depot dropped its price from $10.3 billion to $8.5 billion.
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