Three banks reject KKR’s loan request


one dollarThree banks have reportedly denied private equity firm KKR’s request for a $725m loan.

The decision to turn down KKR’s application was due to concerns that the loan was too risky to get the green light from US regulators, said Reuters, citing sources familiar with the situation.

Last year the Federal Reserve told banks to reduce junk-rated loans that would take a company’s debt above certain limits.

In April regulators kicked off the Shared National Credit programme to examine banks’ loan books.

Earlier this week KKR agreed to acquire Singapore-based bulk containers maker Goodpack in a S$1.39bn ($1.11bn) take-private deal.

Goodpack was valued at at S$2.50 per share, which represents a premium of 44.7 per cent to its 12-month average price.

Copyright © 2014 AltAssets