Ten per cent haircut for Citi on leveraged loans

Citigroup is nearing agreement to sell US$12 billion in leveraged loans at a discount to a group of leading private equity firms, the Financial Times reported.

Apollo Management, the Blackstone Group and TPG would buy the loan portfolio at a discount of around 90 cents on the dollar.

The Citi portfolio includes loans used to finance acquisitions by Apollo, Blackstone and TPG, as well as debt in their rivals' deals, the FT reported. Apollo would buy about half the portfolio, with Blackstone and TPG taking the rest.