KKR to postpone loan sales?

14 September 2007

Kohlberg Kravis Roberts (KKR) could postpone the sale of loans to finance its acquisition of First Data, Bloomberg has reported.

The private equity giant's attempt to take over First Data is regarded as the most ambitious buyout deal since the crisis in the US sub-prime mortgage market impacted on credit markets.

Robert Jones, head of high yield research at Barclays Capital told Bloomberg: "People are looking at First Data as the breakthrough deal. Finding a common ground with investors is going to be a long, hard process. Investors are in a position to demand the most favorable terms right now.''

However, after weeks of negotiations the failure of a number of investment banks to reach an agreement with KKR yesterday over the terms of the deal has put the proposed deal in jeopardy.

It is thought that negotiations were hinged on pricing and the degree of the debt that lenders will attempt to sell on.

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