Leveraged loan market sees second deal done in two days

(Bloomberg) – Digital marketing firm CM Group has become the second company to pull a leveraged loan sale in the United States in as many days as some investors buying the risky debt become more selective amid… a wave of transactions at the end of the year.

The four-year-old company, owner of Campaign Manager and other email marketing platforms, has suspended a seven-year, $590 million offering to help fund its merger with Cheetah Digital Inc. and refinance existing debt, according to people familiar with the matter.

Lead arranger Jefferies Financial Group Inc. withdrew the deal on Friday, two weeks after the original commitments expired, said one of the people, who asked not to be identified because the discussions are private.

The companies do not expect the withdrawal from the sale of the loan to derail the closing of the acquisition, according to a separate person familiar with the matter.

Representatives for Jefferies, CM Group and Insight Partners, majority owner of CM Group, did not immediately respond to requests for comment. A spokesperson for Vector Capital, the majority owner of Cheetah, declined to comment.

Borrowers have raised billions of dollars in the loan market this year to fund everything from leveraged buyouts to payments to private equity owners. A year-end push to wrap up acquisition financings began last week, but some investors are growing cautious about adding risk to their portfolios.

American Physician Partners also suspended a loan sale on Thursday that had struggled to attract investor demand, Bloomberg previously reported.

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Priscilla C. Carnegie