$12 Billion Loans To Be Sold

$12 Billion Loans To Be Sold.

Citigroup is getting closer to a deal that will sell approximately twelve billion dollars of leverage loans and bonds to private equity firms in an effort to fight off the effects of the current economic crisis in America. The largest bank in the United States, Citigroup would be selling the loans at slightly below ninety cents on the dollar to companies such as Apollo Group, Blackstone Group LLP, and TPG, with Apollo taking on half of the debt and the other two companies splitting the other half between them. None of the companies cared to comment on the sale.

Citigroup assumed $43 billion in leverage loans by the end of 2007 and they are trying to recoup some of the losses incurred with the economic slide. The crunch, which started last summer, left Citigroup holding the proverbial bag as more and more investors stop buying off the debts. Many of the debts were left on the books under their face value. Private equity firms are currently looking for ways to spread out some of their money amid all of the buyouts that are happening which is why Citigroup opted to offer the loans to the three companies listed.