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Banks Push Ahead to Offload Risky LBO Debt Ahead of Fed Meeting

  • Early discussions put the bond’s all-in yield at 10%
  • Banks add $1 billion term loan A to Brightspeed buyout
Bloomberg business news
JPMorgan, Barclays See Credit Spreads Pressure
Updated on

A group of banks led by Barclays Plc and Bank of America Corp. is moving forward with a risky leveraged buyout financing despite the volatility gripping the market ahead of the Federal Reserve’s rate decision Wednesday.

An $1.87 billion secured high-yield bond was launched Monday, led by Barclays, to help finance Brightspeed’s acquisition by Apollo Global Management Inc. Early pricing discussions call for an 8% coupon with a discount that will bring the all-in yield to 10%, according to people familiar with the matter.