(Bloomberg) – A group of banks led by Bank of Montreal have delayed the $1.1 billion loan sale to help fund Hig Capital LLC’s plan to buy Canadian company Converte Convertey Technology Solutions Corp., according to people familiar with the matter.
The lender agreed to cover debt earlier this year, when HIG announced plans to merge portfolio company Mainline Information Systems Inc. with Converge. The merged company will be called the Cardinal. Bloomberg previously reported that loan sales have been trying to attract demand. The commitment to the loan has expired on April 1.
Representatives of BMO declined to comment, while HIG and Converge were unable to comment immediately.
Investors have avoided dangerous debts as U.S. President Donald Trump’s tariff plan sparked recession concerns and issued risky assets. Lenders usually sell the credit they promised for the acquisition before the deal is over, but if some end the financing before the financing, some face so-called pending debt that forces banks to force banks to fund the loan.
U.S. leveraged loan prices fell the most at the end of last week, according to the Morningstar LSTA index. The average price is 95 cents USD, the lowest since November 2023.
According to data compiled by Bloomberg, there have been six U.S. leveraged loan transactions obtained from joint organizations this year, most recently in mid-March.
In recent days, attempts to refinance the $660 million junk debt for Chuck E. cheese boss CEC Entertainment has also fought investors, while working to refinance more than $5 billion in private credit loans for Finastra Group Holdings Ltd.
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