Rare Private Credit Auction Seeks Bidders in Market Trading Test

Stifel Financial Corp. is seeking buyers for about $250 million of direct loans held by a client, turning to a practice common in the broadly-syndicated market but rarely seen in private credit to sell the debt.

The boutique bank is taking offers for more than a dozen loans via a so-called bids-wanted-in-competition process, according to people with knowledge of the situation. Bids on the middle-market loans are due next week, they said, adding that potential buyers have to make offers on a loan-by-loan basis, rather than for the full portfolio. About half the loans are stressed or verging on distress, the people said.