Plans to sell the loans for the leveraged buy-out of Clear Channel Communications beginning with $3bn at 90-91 cents on the dollar show that banks must still offer discounts to unload risky debt from the credit boom. On Tuesday, Citigroup, Deutsche Bank and a consortium of banks that funded the $17.9bn LBO met to begin marketing about $3bn in loans to investors. The loan package totals $14bn, but the banks are expected to sell the remaining $11bn piecemeal so as not to flood the market. Unlike some deals when banks broke ranks to sell down debt, the Clear Channel lenders, including Morgan Stanley, Credit Suisse, RBS and Wachovia, have agreed to sell the loans down as a group.

This entry was posted by Gwen Robinson on Wednesday, June 18th, 2008 at 5:29 and is filed under Capital markets, M&A, Private equity. Tagged with citi, clear channel, deutsche bank. Edit this entry.