GSM Outdoors Buyout Loan Struggles as Investors Get Picky

A group of banks led by Bank of America Corp. is struggling to attract demand for a $1.06 billion leveraged loan package to help finance Platinum Equity’s acquisition of outdoor recreation products firm GSM Outdoors as investors remain selective in an otherwise buoyant debt market.

Commitments on the deal were due Friday, and there haven’t been any updates to the original terms announced more than two weeks ago, according to people familiar with the matter, who asked not to be identified discussing a private transaction.

The company’s debt levels and the nature of its business have made some investors ...