BMO-Led Lenders Offer $775 Million Pellera Loan at 92 Cents on Dollar
Updated
Updated · Bloomberg · Jun 18
BMO-Led Lenders Offer $775 Million Pellera Loan at 92 Cents on Dollar
1 articles · Updated · Bloomberg · Jun 18
Summary
$775 million of Pellera Technologies debt is being marketed by BMO-led lenders at as low as 92 cents on the dollar, making it one of the steepest discounted US leveraged-loan sales this year.
Investors are also being offered interest of 4.5 percentage points above the benchmark, underscoring how much extra yield and price concession are needed to move the paper.
The lenders have been stuck with the debt for more than a year after financing a leveraged buyout tied to Pellera, a software company backed by HIG Capital.
The sale highlights continued pressure on banks trying to unload hung LBO financing, even in the broader US leveraged-loan market.