Apollo, Banks Discuss Restructuring for Brightspeed Debt
- Group led by Bank of America, Barclays got stuck with LBO debt
- Talks include potential haircut on debt, new financing
The roughly $5 billion Brightspeed debt load has been a thorn in banks’ side since they agreed to provide financing to fund Apollo’s purchase of the company in 2021.
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Apollo Global Management Inc. and a group of banks led by Bank of America Corp and Barclays Plc have been holding restructuring talks for a slug of Brightspeed debt that could see the banks take a loss, according to people with knowledge of the matter.
Negotiations center around Brightspeed’s owner Apollo and the banks providing new financing to support the company, while the banks would take a haircut on the value of their existing loans, the people added. The new financing would be at least $3.5 billion, some of the people said.