Banks still haunted by hanging loans do out -of -sale agreements anyway

(Bloomberg) banks in the lending of loans to risky enterprises are still prepared to arrange financing packages, even if some lenders in the tariff-induced unrest that do not enable them to load debt to investors. A handful of transactions in euros and dollars show that leverage bankers swallow their fear of “hanging debt” – if the price and borrower are right. This includes the underwriting of KKR & Co. purchase of a Swedish healthcare firm, a $ 1.7 billion debt agreement to help the acquisition of the provider of services to trade in chips manufacturer Altera. Preferred lenders usually have stronger credit ratings, support of significant sponsors or recognizable brands in defending sectors. It also tends to be less exposed to tariff pressure. The sale “is quite large, but not indiscriminate,” says Michael Guarnieri, a managing partner at Evolution Credit Partners, as opposed to periods where primary markets are completely closed. “This time it is different sectors, quality and exposures.” A major test is a sale of $ 4 billion loans and bonds to QXO Inc. ‘s acquisition of Beacon Roofing Supply Inc. to finance, the biggest financing financing since US President Donald Trump’s reciprocal rates were announced on April 2, according to Bloomberg composed data. Banks on both sides of the Atlantic take on volatility that made risky loans and effects of this month unexplained. A few swung away from the typical route of a broad -syndicated sale in favor of downloading debt to the deep pockets of private credit funds. For example, KKK weighs a Unitranche loan for at least one of the debt packages it increases, and other sponsors are considering similar moves. Wall Street is desperate to avoid a repetition of 2022, when the market came to a standstill and holds banks with a backlog of about $ 80 billion that they had to drop off at steep losses, in many cases to private credit funds. This time, banks continued to endorse transactions, although at a slower pace. The uncertainty of unpleasant, unpleasant rates by the US against its largest trading partners and the risk of a global recession has set up many transactions-and left a score of $ 4.6 billion. A financing is ‘hung’ when banks that have loans for a buyout cannot sell the debt to investors until the acquisition is closed. Recent history is reason enough for some of the largest US banks to stay out of new transactions. Morgan Stanley refused the chance to join KKR’s group underwriters in his Swedish agreement, while banks at a recent $ 5.75 billion, 364-day bridge loan to Clearlake Capital Group’s purchase of Dun & Bradstreet Holdings Inc. to offer, none of the guarantees that are usually accompanied by an underwriting purchase. The European market was somewhat more forgiving. In the middle of one of the most volatile weeks in recent times, bankers have managed to sell the debt of Bain Capital’s purchase of German real estate outfit Apleona Group GMBH. They had to sweeten prices, but they still earned their full fees, according to people who are familiar with the matter. Prices in the secondary market for European and US levers have fallen sharply in the wake of the tariff announcement, according to Morningstar Indexes. While they have both gained some land since then, the US index fell again on Monday after Trump’s broaders against Jerome Powell, chairman of the Federal Reserve. The declines have tempted some investors to liquidate existing interest in keeping cash on hand for better transactions in the secondary market, and to wait to see if the market has found its bottom. “We may be willing to miss some of these offers,” says Scott Pike, a senior portfolio manager at Income Research Management. “We don’t feel forced. It offers us the ability to look at offers and bid a little. ‘ The faster recovery in Europe reflects the developments in currencies and government bonds, where the euro trades a more than three years of high and German benchmarks, has been on track for their biggest monthly profit against treasury since 2003. After a lack of agreement, Wall Street-LENERS were at least $ 38 billion worth of sale and loans for buy-out in dollars and euros at the end of the end of the end of the end of the end of the end of the end of March. This was before the announcement of Trump’s liberation day on April 2. While the US president has interrupted the most stringent tariffs on most countries, although it is not of great importance, the loan bankers are still chargeing. Further tests of appetite will come from the launch of € 2.5 billion on high-yield tires that the acquisition of Flutter Entertainment PLC of PlayTech PLC’s Italian gambling industry and $ 4.25 billion in ties and loans of Loans of Sycamore partners’ buyouts, part of the larger Walgreens Boots Alliance Inc. -With help from Alice Gledhill and James Hirai. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 22 Apr 2025, 08:34 pm Ist