Report: Citi to sell $12.5 billion of debt

Citigroup Inc. is nearing a deal to sell $12.5 billion of debt to several private-equity firms, according to published reports.

Citigroup Inc. is nearing a deal to sell $12.5 billion of debt to several private-equity firms, according to published reports.
The prospective buyers are Apollo Management LP of Purchase, N.Y., The Blackstone Group LP of New York and TPG Capital of Fort Worth, Texas.
According to reports, the loans will be purchased for around 80 cents on the dollar, with Apollo buying up half the debt, and the remainder divided between Blackstone and TPG.
The prospective deal, comprising mainly leveraged loans, may be an indication of a relaxing of the tight credit markets, according to reports.
Leveraged loans, which are frequently used to finance corporate deals, have dried up as a result of the whirlwind of defaults and losses from the subprime-mortgage debacle.
A call to Citigroup of New York was not immediately returned.