4/30/2008

Citigroup Inc. is offering below-market terms to trim its $26 billion in leveraged buyout loans, sources told Bloomberg. Citigroup sold $8 billion of the debt to private-equity firms this month only after giving buyers $6 billion of financing at cheaper rates than it can borrow itself, the sources said. Citigroup was stuck with $69 billion of LBO debt when credit investors began fleeing in 2007 to safer bonds and refused to buy the debt, rated below Baa3 by Moody's Investors Service and BBB- by Standard & Poor's.

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