(Bloomberg) — A $3.65 billion term loan package for Focus Financial Partners has been postponed, the third such case this week for a U.S. leveraged loan deal, as global market turmoil in recent days stem debt market issuance.
The transaction was withdrawn from the syndicate on Tuesday morning, according to people with knowledge of the matter who asked not to be identified as the details are private.
Royal Bank of Canada was leading the two-part deal, which began on July 31 and consisted of a $3.33 billion term loan and a $325 million late-drawn term loan. Focus, which provides investment management services, was looking to refinance an existing loan and fund a distribution to shareholders.
Leveraged loan outflows are poised to be the most since the 2023 banking crisis
Planned term loans for SeaWorld Parks & Entertainment Inc. AND SBA Communications Corp. were pushed back on Monday amid sharp declines in stock markets around the world and big moves in bond yields and spreads. Leveraged loans, which had been among the best-performing debt classes this year, on consecutive days posted their biggest price declines since March 2023. The average secondary price is now at its lowest level this year , according to a Morningstar/LSTA index.
Focus and RBC did not respond to a request for comment, nor did Focus co Capital Stone Point. Other sponsors Clayton, Dubilier & Rice declined to comment.