Citigroup Shelves Autokiniton’s $1 Billion Loan Deal

Autokiniton U.S. Holdings has shelved a proposed amendment and extension of an approximately $1.05 billion leveraged loan. According to Sina Finance, a person familiar with the matter said the source requested anonymity because the information was confidential. The company had revised the proposed terms, shortening the maturity by one year to 2030, setting the price at 97.5 cents on the dollar, and setting the interest rate at 4.75 percentage points above the benchmark, the top of the initial discussion range. Investors are seeking greater concessions on financing and refinancing deals for highly indebted companies amid market volatility. The United States completed only four leveraged loan issuances this week. Traders are assessing the potential effect of a Democratic sweep in the midterm elections on AI infrastructure projects that rely on borrowing to expand. A KPS Capital spokesperson declined to comment. Citigroup, the lead arranger, and Autokiniton had not responded to inquiries.