Blue Owl Capital (OWL) could see its junior loan to Loparex wiped out as Monarch Alternative Capital and General Atlantic lead a roughly $1 billion restructuring that will see them own a majority of the business, Bloomberg reported Wednesday, citing sources with knowledge of the matter.
The deal will also shed more than $400 million of liabilities from Loparex's balance sheet by exchanging about half of its first-lien debt for equity.
Blue Owl will receive a small portion of the equity, the sources said, according to the news outlet.
Monarch and General Atlantic bought into Loparex's first-lien debt earlier this year when the loan was trading at distressed levels, the report added.
General Atlantic declined to comment, while the other companies did not immediately reply to a request for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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