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How KKR Beat Citi in Loan Deal for Perelman’s Humvee Maker

  • Wins mandate for transaction originally marketed by Citigroup
  • KKR bought big chunk of debt for credit unit, sold rest
Photographer: Ahmad Al-Rubaye/AFP/Getty Images
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When Citigroup Inc. started hawking $300 million of loans for the maker of the Humvee, investors were willing to buy almost any deal for sale.

Almost. Even after three weeks of talks, investors looking under the hood of AM General LLC weren’t convinced they wanted to lend to a company heavily reliant on one product, the famed military combat vehicle.