Deals
Wall Street’s Hung Debt Swells to $43 Billion as Tenneco Closes
- Banks fund $5.45 billion of debt for Tenneco as buyout closes
- About $2.4 billion of bonds, loans for deal not yet priced
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The amount of risky corporate debt stuck on the balance sheets of Wall Street banks this year swelled to nearly $43 billion as Apollo Global Management Inc. completed its leveraged buyout of auto-parts maker Tenneco Inc.
The acquisition closed Thursday, before a group of banks led by Bank of America Corp. and Citigroup Inc. were able to sell the $2.4 billion in bonds and loans they’ve been marketing to investors. That left the banks to officially fund the full $5.45 billion debt package they agreed to provide Apollo.