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With Junk Debt Proving Hard to Shift, Banks Try Rebranding Their Loans

  • Risky term loan Bs recast as term loan As to mop up liquidity
  • Market participants see little to no change in loan terms
Citrix signage reflected in a window at the comapany's headquarters in Santa Clara, California, US.

Citrix signage reflected in a window at the comapany's headquarters in Santa Clara, California, US.

Photographer: David Paul Morris/Bloomberg
Updated on

Banks are rebranding a chunk of their loans, a move that allows them to keep the debt on their balance sheets in order to mop up some of the $80 billion of underwritten debt flooding the public debt markets.

A $15 billion debt financing for tech firm Citrix is one of the latest deals expected to adjust its capital structure, enabling the arranging banks on the deal to cut the amount of loans earmarked for institutional investors. That follows a similar move taken by banks for deals including Inetum, 888’s buyout of William Hill’s international assets, and Wm Morrison Supermarkets