(Bloomberg) – Borrowers are now saddled with $ 2.2 billion worth of debt for an acquisition linked to a Canadian car partner. The first time Wall Street has held a major financing package since the Trump administration caused a global trade war less than two weeks ago. Typically, when a merger or acquisition is announced, the businesses involved are drawn up immediately of banks, which then market it to investors in the lever loan and high-return markets. ABC Technologies Holdings Inc. closed its purchase from Ti Fluid Systems plc on Tuesday before the banks could sell the bonds and loans, according to people who are familiar with the matter. In Wall Street Parlance, this means that the debt has now been ‘hung’. A group of banks, including Citigroup Inc. and JPMorgan Chase & Co., will have to use their own balance sheets to finance the Apollo Global Management Inc.-backed ABC’s acquisition. Representatives of Citigroup, JPMorgan, Apollo and TI fluids all refused to comment. Banks that bear a lot of guilt on their balance sheets can be limited in their ability to endorse other risky transactions under capital reserve requirements. The last time the Cogs of the Leveraged-Debeb made Machine a few years ago, Wall Street Banks was held with about $ 40 billion in bonds and loans on their books, which reduced in value when investors shot away from the transactions. While the pipeline of this year is much slimmer than in 2022-the last time banks were glued into a dire amount of financing of junk debt, a handful of transactions were launched before the US President Donald Trump announced on April 2. Wall Street Banks tried to raise approximately $ 1.3 billion equivalent to high yields along with a $ 900 million loan for ABC. It was the second acquisition this year to close without the debt being sold. In February, banks held on with a part of $ 750 million debt package for Lakeview Farms’ acquisition of Noosa Yogurt. Not forever after holding a money call on March 25, Banks launched the leverage of loans at a rate of 5.5 percentage points with the insured overnight financing rate, while investors offered a discount between 95 to 96 cents on the dollar, Bloomberg News previously reported. Investors looked at the offer because of concerns about how the rates would affect the Toronto-based ABC and Oxford, England-based TI liquid systems. While that does not mean that the banks will be on debt forever, Trump’s fast -changing tariff policies and retaliation of affected countries mean it will take time to sort out. The banks can sell the debt to private credit companies, amend the conditions of the debt agreement to place or wait for investors with risk-free until the volatility subsides, and mortgage and loan buyers are open to new transactions. (Updates constantly contain comments from TI fluids.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 16 Apr 2025, 12:44 am Ist
Wall Street banks fell with $ 2.2 billion for Apollo Deal
