Monday, July 23, 2007

more resistance from investors for leveraged loan

--$3.1 bil loan of Allison Transmission, buyout by Carlyle group, was postponed --the snag reflected the difficult conditions in the market for risky corporate loans --The Allison debt deal wasn't the only one sidetracked yesterday. --Expedia Inc., the online travel agency, drastically scaled back share buyback plans because it couldn't borrow the funds it needed for the buyback at acceptable terms. --The buyout itself still is on track to be copleted in Q3. Underwriters will be left holding the bag than can be sold when market condition improves.

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