First Data announced on Thursday that its parent has received commitments to purchase about $3.5 billion of equity in a private placement, led by KKR. The proceeds will be used to repay portions of the company's debt.
The private placement includes $1.5 billion from existing investors and $2 billion from new investors, including pension funds, mutual funds, asset managers, and individuals. KKR provided roughly $1.2 billion, First Data said.
KKR's balance sheet will have approximately $1 billion invested in First Data's equity.
"We have taken full advantage of the last 12 months to strengthen our company through a total focus on serving our clients and bringing them new innovations that help them grow their business," Frank Bisignano, chairman and chief executive officer of First Data, said in a statement. "The new investment will unlock $375 million per year to help us accelerate our transformation."
—By CNBC