Wednesday, July 18, 2007

KKR May Increase Interest on Alliance Boots LBO Debt, Default Swaps Show

(Bloomberg) -- Kohlberg Kravis Roberts & Co. may be
forced to offer higher interest to investors on 9 billion pounds
($18.5 billion) of loans to finance the buyout of U.K. pharmacist
Alliance Boots Plc, according to traders of credit-default swaps.

Investors are shunning high-yield debt as losses in U.S.
subprime mortgages roil corporate bonds and loans. The tougher
conditions forced KKR to cancel this week a 1 billion-euro ($1.4
billion) financing for Dutch retailer Maxeda NV. The New York-
based buyout firm delayed a $3 billion sale of debt last month to
acquire catering company U.S. Foodservice in Columbia, Maryland.


Read more at Bloomberg Bonds News

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