Blackstone to Sell 49 Percent of NCR Stake

NCR Corporation has announced that it has entered into an agreement with Blackstone, under which Blackstone is granted an early release from its lockup to sell a portion of its holdings to allow it to recoup its investment, while at the same time extending the lockup period on the remainder of that investment. The transaction, which will increase NCR’s planned 2017 share repurchases, is expected to deliver value to NCR stockholders and further optimize the Company’s capital structure.

“Given that Blackstone’s lock-up period for its perpetual convertible preferred shares is set to expire in early June, and as our common stock is approaching the mandatory 2018 conversion price of $54 for those preferred shares, we recently engaged with Blackstone on options for their investment,” said NCR Chairman and CEO Bill Nuti. “In a win-win solution, we have agreed to provide Blackstone with an early release to sell 49% of its holdings, or approximately 14.4 million shares on an as converted basis.” As part of the transaction, Blackstone will convert 90,000 of their convertible preferred shares into approximately 3 million shares of common stock, and NCR will repurchase those shares as part of its ongoing buyback programs. Nuti added, “This transaction is more accretive to our stockholders than further open market purchases, eliminates the ongoing dividend costs on the preferred shares, is accretive to EPS, and reduces our financial leverage.”

“We are pleased to continue to partner with NCR and are absolutely committed to the ongoing success of the company. After this transaction, we will continue to own close to our original investment amount in the company, at over $720 million,” said Greg Blank, Managing Director, Private Equity, at Blackstone. “Given the strong partnership between Blackstone and NCR, Blackstone is extending the lockup on our remaining 51% stake by another six months to December 1, 2017, and we will continue to have two seats on the NCR Board of Directors.”

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