Big test of leveraged loan market coming up

The leveraged loan market has been whipped recently. Obviously, it went into the doldrums as the credit crunch reached its nadir. But then the vultures moved in, including a lot of private equity firms, and it looked like the debt was heading back to par. Now, it's a mixed bag. We may get a clearer view of the market when Citigroup, Deutsche Bank and others try to sell about $12 billion in loans in support of the Clear Channel Communications deal. Which, as you may recall, was hotly contested between the banks and private equity buyers Bain Capital and THL Partners. The New York Post reports that the debt may sell at a steeper discount than the average leveraged loan, given the fundamentals in the radio industry.  

For more:
- here's the Post article

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