NEW YORK, Sept 29 (Reuters) - A group of banks canceled efforts to sell $3.9 billion of debt that financed Apollo Global Management Inc's deal to buy telecom and broadband assets from Lumen Technologies Inc.
Brightspeed, the company that Apollo formed after the acquisition of Lumen's assets, blamed adverse market conditions for the decision to pull the debt offering.
"The withdrawal of the announced debt financing package is not expected to impact Brightspeed's business, employees or customers. Brightspeed expects to commence a debt financing transaction at some point in the future," the company said in a statement on Thursday.
A consortium of banks led by Bank of America Corp and Barclays Plc had planned to sell a $2 billion leveraged loan and a $1.9 billion junk bond, but canceled the syndication after it failed to generate enough orders from investors, Reuters reported earlier on Thursday.
Last year, Apollo agreed to buy assets and operations of Los Angeles-based Lumen Technologies in 20 states for $7.5 billion, including debt.
The deal is set to close as scheduled in early October, the Brightspeed statement said.
The unsuccessful debt syndication is the latest sign that banks are struggling to offload billions of dollars in junk-rated debt from their books owing to current market volatility.
Last week, Wall Street banks including Bank of America, Credit Suisse Group AG and Goldman Sachs Group Inc suffered a $700 million loss on the sale of about $4.55 billion in debt backing the leveraged buyout of business software company Citrix Systems Inc. (Reporting by Matt Tracy in Washington, D.C and Abigail Summerville in New York; Writing by Chibuike Oguh in New York; Editing by Cynthia Osterman)