NEW YORK — A compromise between the firm set to purchase First Data Corp. and the banks that are committed to financing the sale appears to have paved the way for it going forward.
Wall Street analysts had been concerned whether pressures brought to bear by the tighter credit market might undercut the deal and call it off, but The Wall Street Journal has reported that KKR agreed to introduce performance measurements into the deal that it is using to finance the move.
Under the terms of the performance, the paper reported, KKR agreed that First Data will have to keep earnings at a certain ratio to its debt. But the private equity giant was able to resist demands from the bankers that it increase the interest rate on the money it was borrowing.
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