First Data will use the funds to refinance its debt, the company said in a statement. It will repay part of its $2bn of 11.5 per cent senior payable-in-kind noted due 2016 and exchange the remainder for new 14.5 per cent notes due 2019.
KKR and other shareholders invested $7.2bn as equity in the company in 2007, according to Reuters.
First Data CEO Frank Bisignano said, “While the company has successfully extended the maturities for some $21 billion of debt through the second quarter of this year, this agreement allows us to address the junior-most of the debt structure and an element that has been of interest to investors.”
In the meantime, KKR has reportedly made an offer to buy German medical skin patch maker LTS Lohmann.
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