In one ominous sign for the private equity sector, however, the Wall Street Journal reported on Wednesday that investors issued a resounding âNoâ to a leveraged-buyout debt offering on Tuesday, leaving banks unexpectedly holding more than $3bn and raising concerns about the changing economics of the takeover boom. Underwriters pulled a $1.55bn bond offering by US Foodservice, the nationâs second-largest food distributor, which is being bought by KKR and Clayton, Dubilier & Rice from Ahold of the Netherlands for a total $7.2bn. An accompanying plan to sell on debt of $2bn used to fund the acquisition has also been postponed. For now, the banks involved in underwriting the deal will simply have to keep their bridge financing facilities open. The move âcould signal tension in the Wall Street ecosystemâ, in which banks, private-equity funds and investors have until now worked hand-in-hand to power the historic buyout binge, says the Journal. Source :http://ftalphaville.ft.com/blog/2007/06/27/5487/a-failed-us-bond-offering-and-the-end-of-cheap-debt/