Banks plan to fund debt for Nielsen Holdings leveraged buyouts (NYSE: NLSN) and possibly Tenneco (NYSE: TEN).
Banks should finance the purchase of Nielsen (NLSN), according to a Bloomberg report, who quoted familiar people. Banks, including Bank of America and Barclays, have until around October 11 to try to offload loans and bonds or they will be forced to fund the $8.4 billion in debt from the acquisition.
There also appears to be a strong likelihood that banks, including Citi and BofA, will need to fund the more than $5 billion in debt for Apollo’s (APO) planned acquisition of Tenneco (TEN), according to the Bloomberg report. The banks may not need to step in because the deal with Tenneco has yet to be approved by European regulators.
The report comes after a delisting notice from the NYSE on Monday said shares of Nielsen (NLSN) would be suspended Oct. 12 due to its planned sale to Elliott Management and Brookfield Business Partners. Dealreporter also said on Monday that funding offered by Nielsen to support private equity firms would face significant delays due to the market meltdown.
The latest updates also come after banks on Thursday suspended a $3.9 billion debt bid for Apollo Global’s (APO) deal to buy Brightspeed.
Tenneco fell slightly last week as investors worried about deal financing, in light of the current market volatility and recent issues surrounding the sale of Citrix Systems to Elliott and Vista Equity, where underwriting banks the debt backing the deal is collectively heading towards $500 million. losses when the debt was sold at auction at a discount.