Leveraged Loan Investors Demand Steepest Discount Since 2011
ByWall Street banks are being forced to sell leveraged loans at the steepest discounts in four years as sentiment sours for risky assets amid a commodities slump.
The average discount needed to sell U.S. first-lien loans in October widened to 97.13 cents on the dollar from 99.10 cents in September, according to data compiled by Bloomberg. The difference translates into an extra $18 million in increased costs for every $1 billion borrowed.
Fullbeauty Brands LP, an apparel retailer for plus-sized people, issued a $820 millionloan backing its buyout by Apax Partners at 93 cents on the dollar, according to data compiled by Bloomberg. That’s one of the biggest discounts offered this year on a loan. Foundation Building Materials borrowed a $245 million loan backing Lone Star Funds’s takeover of the construction materials distributor at 95 cents…
Leveraged Loan Investors Demand Steepest Discount Since 2011
