$12 Million BtoB Lead Alert
Steve’s breakdown: When a company pays this much, you’ll be sure they will be changes-a-comin’. Either Darling Advertising or Y&R has the account. Click here for the latest creative.
HOUSTON, TX: KKR & Co.’ will pay $8.3 billion to buy BMC Software, sources said — marking the buyout shop’s biggest acquisition in years.
Henry Kravis’ firm is working with Credit Suisse, Goldman Sachs and four unregulated banks to arrange financing for the LBO, a source said.
KKR announced the deal on Tuesday, but the price was not disclosed.
“It’s an unusual lineup for something that big,” a lending source said, adding that you would expect to see Bank of America or JPMorgan in on the action.
KKR might be turning to less traditional lending sources because of the amount of leverage it is using to complete the buyout, the source speculated.
In a separate deal, KKR’s pending bid for Envision Healthcare, the private equity firm is raising 7.25 times Ebitda. Financing for that deal is still being shopped.
Over the last several years, PE firms have typically not borrowed money for much greater than a six times Ebitda.
The Post broke the news last week that KKR was in exclusive talks to buy BMC.