- Goldman Sachs and JPMorgan are having trouble selling $1.2B of loans backing the LBO of FullBeauty Brands, reports the WSJ. Prior to this bout of market turbulence, the two banks in August had committed to lending the money for the buyout to P-E firm Apax Partners.
- Traditional investors have so far balked at paying the 98-99 cents on the dollar asking price, forcing Goldman and JPMorgan to try and unload the paper to hedge funds and distressed-debt specialists at lower prices.
- Investors are comparing this deal to 2013's Apax purchase of rue21. Those loans totaling $780M were led by Goldman, JPMorgan, and BofA - all of which were forced to sell the paper at steep discounts after a weak earnings report by the retailer.
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