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FDC - First Data


walkie518

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There is a fair amount of leverage in this name, but the margins are very high and there is plenty of interest coverage. 

 

It doesn't seem to hurt that FDC has been slowly but consistently growing revenues and margins.  In many cases, you can only hope for one of the two...

 

Perhaps the KKR overhang is so substantial that no one wants to participate?  At the same time, a company that's knocking the cover off of the ball should be priced more fairly? 

 

Even if there's younger competition, free cash flow growth coupled with top-line growth plus the breadth of contacts and relationships must be worth something?

 

With nothing due until 2020 (and that being a $1.3B term loan)  and bonds all due in 2023 and 2024, I don't see much execution risk?

 

Has anyone spent any time on this one?  Rather could anyone tell me why a large position isn't worthwhile? 

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