Bloomberg noted the plethora of private equity underwriters (PEU's) conducting IPO's. Big names, from The Carlyle Group to KKR, are ringing the register on affiliates. The article stated:
HCA, the hospital chain bought four years ago in a $33 billion LBO led by KKR & Co. and Boston-based Bain Capital LLC, filed with the SEC in May to sell $4.6 billion of shares.
The hospital operator will get about 54 percent of the proceeds, which will be used to pay back some of its $25.7 billion in debt. HCA’s owners, who used borrowed money for more than 80 percent of the purchase price, will get the rest.
PEU owners will garner $2.1 billion from HCA's IPO. The article didn't cite previous bleeding of HCA via special dividends/distributions. SEC filings show HCA paid investors $1.75 billion and $500 million in 2010. Total proceeds to HCA's owners in 2010 will be $4.35 billion. No wonder PEU's salivate over hospitals.
