Leveraged loan market may finally be getting in gear as hedge funds transmit $1bln

From the WSJ:

Citigroup, Lehman Brothers and Merrill Lynch have managed to sell $1 billion of loans for Allison Transmission that they were forced to hold when investors wouldn’t bite on them in early August. The debt backs General Motors’ sale of the auto-parts maker to two private-equity firms for about $6 billion.

The debt sale is one of the largest since Chrysler Financial sold $6 billion of loans in late July, according to Standard & Poor’s Leveraged Commentary & Data. To get the deal done amid the still-rocky state of the credit markets, the banks had to offer the paper to hedge funds and other credit investors at 96 cents on the dollar.

http://blogs.wsj.com/deals/2007/09/11/hedge-funds-transmit-1-billion-to-allison/

Back in play...

 

.96 cents ROFL....ya great market conditions.