Deals
Goldman Strikes Unusual Concession in Struggling $2 Billion Deal
- Credit swap bets play role in debt terms for Supervalu deal
- Hedge funds including Anchorage said to reap CDS windfall
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With markets souring this month, Goldman Sachs Group Inc. found an unusual ally to help with a struggling buyout loan: hedge funds that had been betting against the target company.
The investment bank was lead underwriter for debt that financed United Natural Foods Inc.’s acquisition of grocery chain Supervalu, and as markets made investors increasingly skittish, Goldman faced potential losses if it struggled to place the debt. As bankers often do in such situations, they sweetened the pot.