GO
Loading...

Enter multiple symbols separated by commas

GM's Allison Unit Buyout Faces Hurdle: WSJ

A $3.1 billion debt sale to pay for the buyout of General Motors' Allison Transmission unit has been postponed, the Wall Street Journal said on its Web site on Monday, citing an unnamed source.

Underwriters, including Citigroup, Lehman Brothers and Merrill Lynch, were planning to sell the loans to investors, the paper reported.

The firms will now try to distribute the loan among a small group of banks, the paper said.

GM agreed in June to sell the Allison Transmission unit for $5.6 billion to private equity firms Carlyle Group and Onex Corp.

The deal is being financed by $3.5 billion in corporate loans and $1.1 billion in junk bonds, the paper said.

The junk bonds have not been offered to investors yet, the paper said, adding that the buyout was still on track to be completed in the third quarter. Citigroup, Lehman Brothers, Merrill Lynch and GM could not be reached immediately for comment.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.