Carlyle halts IPO of affiliate

Our Banking Bureau
29 June 2007

One 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.

In 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."

Carlyle 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

The 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.

Citing disturbed market conditions Arcelor Finance has also set aside plans for its bond issue.

According to Standard & Poor''s, about $250 billion worth of financing arrangements are waiting to come to market.