Banks Sit on Billions of LBO Financings as Demand for Debt Falls
- Russian invasion has disrupted debt markets in U.S. and Europe
- U.S. market has started to open up quicker than Europe
Banks across Europe and the U.S. committed to lend tens of billions of dollars for leveraged buyouts and acquisitions. Now they need to find buyers for the debt, and demand is relatively weak.
A group of lenders including Credit Suisse Group AG, Bank of America Corp., and Goldman Sachs Group Inc. is committed to provide around $15 billion of financing for the leveraged buyout of Citrix Systems Inc., a maker of remote-work software, and is expected to try to offload that exposure as soon as next month. That’s just one of the more than $37 billion of pending debt deals in Europe, and $38 billion of coming leveraged loans in the U.S., figures that both include at least some Citrix debt, according to data from Bloomberg and Deutsche Bank AG respectively.