News

Blackstone sells part of its stake in NCR

September 19, 2019

NCR Corp. said Wednesday that it is allowing Blackstone Group Inc., a private-equity firm, to retire 57% of its NCR preferred stock.

As part of the transaction, NCR will pay Blackstone $302 million in cash in exchange for 237,673 shares of preferred stock. The remaining 274,548 shares will be converted to approximately 9.16 million shares of common stock, NCR said.

According to Bloomberg, the 9.16 million shares of common stock were priced at $32.75 per share. 

The agreement with Blackstone eliminates preferred stock dividends of $28.5 million per year and reduces NCR's diluted share count by approximately 7.9 million shares. NCR funded the $302 million in cash through its existing credit facility and cash on hand.  

"The retirement of this Preferred Stock is an important milestone for NCR, and we thank Blackstone for their support, partnership and commitment to our success," Michael Hayford, NCR president and CEO, said in a press statement.

Chinh Chu and Greg Blank, who were designated by Blackstone for election to NCR's board, will remain on through the completion of their terms, the company said.

In late 2015, Blackstone invested $820 million into NCR, after its effort to sell itself failed. Blackstone also got two board seats in connection with the deal.

NCR used the net proceeds from the investment, together with cash on hand and borrowings under NCR's revolving facilities, to fund the repurchase of up to $1 billion of shares of NCR common stock.

Blackstone sold nearly half of its common stock and a portion of its preferred stock in NCR in March 2017.