Citigroup: Lend In May And Go Away?

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Is the debt window closed to leveraged buyouts at Citigroup? This morning we spoke with a source at a private equity firm who told us that Citigroup has become entirely unresponsive to inquiries from private equity firms seeking leverage for buyouts.
"Chuck Prince says they're still at the dance. If that's true, they're playing the wallflower part," the private equity executive told DealBreaker.
As recently as last Friday, Citigroup chief Charles Prince was being quote in the press with claims that Citigroup wasn't pulling out of the market for buyout loans. But as credit worries have spread from subprime to the broader markets for corporate borrowing, some say that Citigroup has stopped dancing.
Citigroup has one of the biggest loan books on Wall Street, and may be feeling the pain from a credit crunch more than others. As investors have recently shunned LBO debt offerings, banks have been forced to sell loans below par or carry more of the loans on their own books. According to our source, Citigroup seems to have decided to carry the loans, and as a result new lending for buyouts from the bank have slowed to a halt.
Citigroup could not be reached for comment. They are probably all still swimming to work.

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