Three longtime banks for private equity firm KKR & Co LP have snubbed a request for a $725 million takeover loan over concerns it is too risky to pass muster with U.S. regulators, sources familiar with the situation said on Thursday. The banks had funded a similar deal six months earlier.The Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp jointly issued guidelines in March 2013 that require banks to cut down on junk-rated loans that would raise the debt levels of a company beyond certain thresholds.Last month, regulators launched an annual examination of banks' loan books, known as Shared National Credit reviews, and stepped up enforcement of the guidelines. The reviews will likely determine to what extent banks can make exceptions to the guidelines, which have been criticized by many leveraged finance professionals as ambiguous.In December, Morgan Stanley, Credit Suisse Group AG and Goldman Sachs Group Inc were among banks that helped finance KKR's $1.6 billion leveraged buyout of landscaping company Brickman Group Ltd. Morgan Stanley and Credit Suisse had the lead roles in that deal.
Credit Suisse Group AG is a Switzerland-based holding company engaged in private banking, investment banking and asset management areas. Shares of CS fell by 1.17% or $-0.35/share to $29.61. In the past year, the shares have traded as low as $25.93 and as high as $33.98. On average, 990264 shares of CS exchange hands on a given day and today's volume is recorded at 1196092.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 0.28% or $-0.45/share to $160.74. In the past year, the shares have traded as low as $148.71 and as high as $181.13. On average, 3216980 shares of GS exchange hands on a given day and today's volume is recorded at 1761798.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS traded higher by 0.65% or $0.2/share to $31.13. In the past year, the shares have traded as low as $23.83 and as high as $33.52. On average, 12209400 shares of MS exchange hands on a given day and today's volume is recorded at 8578482.
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