Banks postpone loan sale for Hig's US Canada IT merger

(Bloomberg) – A group of banks led by Bank of Montreal has postponed a $ 1.1 billion loan sale that would help Hig Capital LLC’s planned purchase from Canadian firm Converge Technology Solutions Corp. to finance, according to people with knowledge of the matter. The money shooters agreed to endorse the debt earlier this year, when Hig announced that he was planning to melt the portfolio head information systems in Converge. The combined firm will be called cardinal. The loan sale struggled to attract the question, Bloomberg reports. The commitments for the loan were on April 1st. A representative for BMO refused to comment, while Hig and Converge were not immediately available to comment. Investors have kicked away from risky debt offers over the past few days, as US President Donald Trump’s tariff plan caused the fear of the recession and sent the risk assets. Lenders usually sell credit they committed for an acquisition before an agreement concludes, but some face the prospect of being left with so -called hanging debt if they close before financing can be syndicated to investors, forcing the banks to finance the loans. According to a Morningstar Lsta index, US prices in the loan loan had their biggest two-day decline in five years to finish last week. The average prices are 95 cents on the dollar, the lowest since November 2023. There have already been six US leverage loans drawn from the syndication this year, according to Bloomberg composed data, the most recent mid-March. Over the past few days, an attempt to refinance $ 660 million worth of junk debt for the Chuck E. Cheese owner CEC Entertainment, also struggling with investors, while attempts to make more than $ 5 billion in private credit loans of Finastra Group Holdings Ltd. to get apart, fall apart again. (Updates throughout.) More stories like these are available on Bloomberg.com © 2025 Bloomberg MP