A group of lenders led by Bank of America Corp., Credit Suisse Group AG and Goldman Sachs Group Inc.. faces a narrow path to avoid losses on one of the biggest buyout financings of the past decade. Private credit firms awash with cash can only do so much to help.
The blowout of high-yield spreads in recent months is making it increasingly difficult for underwriters to offload the debt for the take-private of Citrix Systems Inc. to investors at levels close to what they’d committed to when the deal was announced in January. That’s especially true for the riskiest piece of the $15 billion financing, a $4 billion loan that’s expected to be replaced by unsecured bonds.
