Guggenheim Affiliates May Buy $1.18 Billion Loan as Probe Fallout Drives Debt to 73 Cents
Updated
Updated · Bloomberg · Aug 28
Guggenheim Affiliates May Buy $1.18 Billion Loan as Probe Fallout Drives Debt to 73 Cents
2 articles · Updated · Bloomberg · Aug 28
Summary
Guggenheim Investments told lenders affiliates may buy portions of the $1.18 billion GIH Borrower LLC loan due 2031 after the debt sank this week to as low as 73 cents on the dollar.
The slide reflects mounting fallout from investigations into Mark Walter’s businesses, including scrutiny of insurer loans that were funneled to other parts of his financial empire.
A price in the low 70-cent range typically signals distress, underscoring how sharply confidence in the financing entity has deteriorated in recent weeks.
Later on Aug. 28, a Guggenheim affiliate bought some of the debt through Bank of America, helping lift the roughly $1.2 billion loan back to about 84 cents.