NEW YORK: Goldman Sachs Group Inc is causing headaches for fellow Wall Street banks that are trying to offload US$3 billion of risky debt that funded last year’s biggest leveraged buyout, according to people with knowledge of the matter.
Goldman Sachs sold about US$100 million of the loans last week at US$0.85 on the US$1 dollar, US$0.05 lower than where a group of lenders led by Bank of America Corp were marketing the debt at the same time, the people said.
The bank group is now offering the larger chunk of the debt at a similar discount after some investors pushed for matching concessions, the people said. The bank’s decision is a break from a common industry practice where lenders that commit to fund large corporate transactions pool their efforts to find investors for the debt.
