day after Jason Lee, managing director and head of private equity (PE) firm Carlyle
Group''s Asian real estate division confirmed that the firm was considering going
public, a fixed-income affiliate of the firm yesterday announced the postponement
of a planned initial public offering on the Euronext Amsterdam stock exchange.
a statement, the Washington-based firm said, "CCC is preparing a supplemental
offering memorandum that will contain a revised timetable for the global offering
and other changes to the terms of the global offering."
expects approval for the changes within a week. "We have reduced the offering
to $300 million from $400 million and reduced the price to $19 per share,"
a spokesperson for Carlyle said. "There''s been some instability in the credit
market, which is the reason for the alteration of the terms." The offering
will supplement the $600 million raised in a private placement last year
postponement follows Kohlberg Kravis Roberts & Co. and Clayton, Dubilier &
Rice Inc. deciding to finance their $7.1-billion buyout of US Foodservice Inc.
with a bridge loan instead of a bond and senior debt financing.
disturbed market conditions Arcelor Finance has also set aside plans for its bond
to Standard & Poor''s, about $250 billion worth of financing arrangements are
waiting to come to market.
decision also follows the fate of the Blackstone Group LP stock, which after surging
is trading below the offer price, which analysts attribute partly due to concern
that the US Congress could increase taxes on the profits of publicly traded PE
firms from 15 per cent to 35 per cent.
had announced its plan in May to list its fixed-income affiliate on Euronext Amsterdam,
in the footsteps of US buyout firm Apollo Management LP and KKR. Lehman Brothers
Inc. also recently announced plans for a $500 million July IPO in Amsterdam.
last week Carlyle set a price range between $20 and $22, since reduced to $19.
The offering will include roughly 18.874 million of new Class B shares and 173,200
B shares sold by existing shareholders. Shares will be sold through a placement
with institutional investors in the Netherlands and other countries but not available
to investors in the US..
IPO is being handled by Bear, Stearns International Ltd, Citigroup Global Markets
Ltd, Deutsche Bank AG, Goldman Sachs International, J P Morgan Securities Ltd.
and Lehman Brothers International.
to the original prospectus, the underwriters will also have an over allotment
option to sell an additional 2.857 million shares.