Deals
KKR Seizing on Banks’ Withdrawal Amid Leveraged-Loan Risk
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Preferred Sands LLC was 40 days from a potential bankruptcy when KKR & Co. made an offer that Wall Street’s biggest banks wouldn’t.
After the company’s debt load increased to a level that bank regulators have said is too risky, the private-equity firm swooped in with $700 million of loans. For the lifeline, KKR got a 40 percent stake in the oil-services company and a whopping 15 percent yield on one of the loans -- almost 6 percentage points more than the average at the time for the riskiest junk bonds.