Citigroup Chief Aims to Sell $12 Billion of Loans, Person Says
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Citigroup Inc. Chief Executive Officer Vikram Pandit, pushing ahead with an effort to shrink the bank's balance sheet, is planning to sell $12 billion of loans at a loss to Apollo Management LP, Blackstone Group LP and TPG Inc., a person briefed on the matter said.
A sale to the private equity firms would shield the bank from further declines in the value of the debt, said the person, who wouldn't be identified because negotiations are private. The loans are part of the $43 billion in financing that Citigroup agreed to provide for leveraged buyouts last year before credit markets froze and saddled the New York-based company with hard-to-sell assets.