Apollo Gains on Wall Street With Westinghouse Bankruptcy Loan

Apollo Global Management LLC’s deal to finance Westinghouse Electric Co. in bankruptcy solidified the private equity firm’s place in a hotly contested corner of the loan market, a territory once controlled by Wall Street’s largest banks.

The private-equity giant outbid a group led by Goldman Sachs Group Inc. last week to provide Westinghouse a “debtor-in-possession” loan, a type of debt that bankrupt companies use to fund operations while they reorganize. Such lenders typically get repaid before all other creditors, and because the borrowers are companies in distress, the loans usually pay among the highest yields in the market.