Affiliates of Guggenheim Investments may buy portions of a $1.18 billion loan issued by its financing entity after the debt’s value fell sharply, Bloomberg reported.
The GIH Borrower loan, due in 2031, dropped as low as 73 cents on the dollar this week, a level typically associated with distressed debt. The loan was indicated at about 77 cents on Tuesday.
A disclosure to lenders described the loan as an attractive investment opportunity and said Guggenheim Investments or its affiliates may purchase term loans in the open market. The loans would be held as investments by an affiliate rather than canceled by GIH Borrower.
The decline came as investigations into businesses controlled by Mark Walter, the asset manager’s owner, intensified. Guggenheim did not respond to a request for comment.
Written by: Editorial Team – Edited by Estefano Gomez @CryptoBriefing
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