Banks Seek to Shed $1.5 Billion of Patterson LBO Debt (1)

Wall Street banks are seeking to offload $1.5 billion of debt tied to Patient Square Capital’s buyout of Patterson Cos. after being stuck holding it on their books for months due to market volatility that derailed the offering.

The banks, which include UBS Group AG and Citigroup Inc., are selling a $1 billion loan and $500 million of secured notes, according to people with knowledge of the matter, who asked not to be identified discussing a private transaction. It is just a portion of the $2.35 billion worth of debt they underwrote for the acquisition.

The loan ...