Citigroup nears deal to unload $12B of loans
The investment bank is attempting to leverage its holdings of corporate debt to a group of private-equity firms, according to a report by The Wall Street Journal.
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| Citigroup is close to making a deal to unload $12B of their $43B in leveraged loans. |
NEW YORK (CNNMoney.com) -- Citigroup is close to making a deal to unload $12 billion of risky leveraged loans and bonds to a group of private-equity firms, according to a report by The Wall Street Journal, citing people familiar with the matter.
Citigroup (C, Fortune 500) had $43 billion worth of leveraged loans on its books at the end of the fourth quarter.
The pending deal would be with the private-equity firms Apollo Management, TPG and Blackstone Group, according to The Wall Street Journal.
Citigroup spokesman Dan Noonan declined to comment on The Journal's report.
As the credit crunch hit the financial sector this past summer, there was less demand for risky loans and investment banks like Citigroup ended up having billions of dollars of unwanted, risky debt on their balance sheet. 
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