Risky, Junior Buyout Loan Comes Back to Market in Largest Deal on Record
- Debt arrangers led by Stone Point launch second-lien deal
- Junior debt has fallen out of favor in risky loan landscape
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A group of debt arrangers on Friday launched the sale of a $1.9 billion second-lien loan, turning to a form of financing that has fallen out of favor to help fund the leveraged buyout of Truist Financial Corp.’s insurance business.
Second-lien loans have all but disappeared from the market for risky corporate borrowing in recent months as companies rushed to replace them with cheaper, more senior debt. The debt sale launched Friday — led by Stone Point Capital Markets — marks a stark departure from that trend.