Finance
RBC-Led Banks Offer Juicy Yield to Offload Last of Tenneco Debt
- Bond sale to replace bridge financing stuck on banks’ books
- Banks sold $3 billion of discounted Tenneco debt last year
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A group of lenders led by Royal Bank of Canada launched a roughly $365 million bond sale to offload debt they’ve been stuck with since Apollo Global Management Inc.’s buyout of Tenneco Inc. in 2022.
The debt deal is being discussed at a discounted price of 87 to 88 cents on the dollar, according to a person with knowledge of the matter, and is being offered at a coupon of 11%, according to bond documents seen by Bloomberg. The notes, which are rated Caa1 by Moody’s Ratings and mature in 2029, are expected to price Wednesday.