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Banks Face Losses as They Finalize Latest Sale of Morrison Debt

  • Notes being offered at discount of 89% of face value
  • Goldman Sachs, BNP Paribas, others are finalizing private sale
A bag of groceries at a Morrisons supermarket.
A bag of groceries at a Morrisons supermarket.Photographer: Chris Ratcliffe/Bloomberg

Banks are finalizing a private sale of another part of the 6.6 billion pound ($8.3 billion) debt backing the buyout of Wm Morrison Supermarkets PLC. If it goes through, they’ll lose their fees for the deal and then some.

Goldman Sachs, BNP Paribas and others are selling a 1.2 billion pound tranche of top-ranked bonds to direct lenders and credit funds, according to people familiar with the matter who asked to remain anonymous because the discussions are private. The notes, which pay interest of 5.5%, are being offered at a discount of around 89% of face value, they added.