The Deal's London bureau has confirmed a report from The Times of London that Goldman Sachs Group Inc. is selling €100 million ($158 million) of the senior leveraged debt of Bavaria Yachtbau GmbH at the rock-bottom price of €0.65 on the euro to unnamed hedge funds.
With Goldman and Dresdner Kleinwort providing the financing, Bain Capital took the yachtmaker private in a $1.5 billion deal in June 2007, but the collapse of credit markets later in the summer left €900 million of debt on the two banks' balance sheets. The deal still leaves Goldman with another €350 million of the debt on its books.
Plenty of other banks are now making moves to sell their leveraged debt portfolios, and if private equity and distressed debt buyers can get steep discounts like this the credit markets may be open faster than many thought.
Additional coverage of the Goldman deal will come later in The Daily Deal and on TheDeal.com. - George White
See Times of London story
See Dealscape post on debt sales
