Autokiniton US Holdings Inc. shelved a $1.05 billion leveraged loan deal after failing to reach an agreement. The firm had sweetened terms, but investors demanded more concessions from companies seeking to refinance debt. Only four deals launched this week as volatile markets made lenders cautious about funding new corporate projects.
Autokiniton US Holdings Inc. has shelved an attempt to amend and extend a roughly $1.05 billion leveraged loan deal, according to a person with knowledge of the matter, who asked not to be identified discussing private details. The automotive-component supplier had previously sweetened the terms, shortening the proposed loan extension by a year to 2030, increasing the discount to 97.5 cents on the dollar and setting the interest rate at 4.75 percentage points above the benchmark, the wide end of initial discussions. The KPS Capital Partners-backed firm had also agreed to document changes that boosted lender protections, Bloomberg previously reported.
Investors have demanded more concessions from highly leveraged companies seeking to fund deals or refinance debt. Only four US leveraged loan deals launched this week amid volatile markets as traders assessed how a Democratic sweep in the midterm elections might affect the debt-fueled buildout of artificial intelligence infrastructure. A representative for KPS declined to comment while messages left with Autokiniton and Citigroup Inc., which was leading the deal, were not immediately returned.