Wall Street firms postponed a debt sale of $3.1bn in loans to pay for the buyout of General Motors’ Allison Transmission unit by private-equity firms, the Wall Street Journal’s Heard on the Street column reports, citing a person familiar with the matter. Underwriters including Citigroup, Lehman Brothers and Merrill Lynch were planning to sell or syndicate the loans to investors, but will now try to distribute the loan among a small group of banks. GM agreed in June to sell its Allison unit for $5.6bn to private equity firms Carlyle and Onex. The deal is being financed by $3.5bn in corporate loans and $1.1bn in junk bonds, the Journal said.

This entry was posted by Gwen Robinson on Tuesday, July 24th, 2007 at 5:38 and is filed under Capital markets. Tagged with Allison Transmission, carlyle, gm, onex. Edit this entry.