DENVER – First data Corp., which was taken private in 2007 in one of the biggest leveraged buyouts ever, reported a $3.8 billion loss for 2008, after taking impairment charges for almost all of its business lines.
That compares to a loss of $849 million for 2007, due to finance charges related to the huge buyout. First Data was taken private in 2007 in a $27 billion buyout by private equity giant Kohlberg Kravis Roberts & Co.
The 2008 losses were mostly caused by $3.2 billion of goodwill impairment charges in the fourth quarter, as well as declines in operating results across the payment giants business lines.
The losses also include write-downs on First Data’s shares in Fannie Mae, in the Reserve Primary Fund and in a $492 million holding of student loan auction rate securities.
