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First Data Buyout Loans: Signs Of Life In The Loan Market

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More news from planet LBO. Despite the rocky news on Archstone this morning, things are looking up this afternoon. The banks financing Kohlberg Kravis Roberts & Co. buyout of First Data Corp began selling around $10 billion of the deal’s bank loans.
As predicted, the loans sold at a discount. But at 96 cents on the dollar, the banks seemed to have little trouble placing the loans. Most have now been purchased by investors, DealBreaker can report.
The success of the First Data loan sell-off is being greeted as a welcome sign that there’s still life in leveraged loan land. “It's a significant event on the road back to normality,” a London based hedge fund bond manager tells Bloomberg. “It shows that investors at least will accept a market clearing price and that wasn't the case a month ago.”
KKR Banks Selling $10 Billion of First Data Loans [Bloomberg]