Wall Street Banks Stuck With $2.2 Billion Debt for Apollo Deal

Lenders are now saddled with $2.2 billion in debt for an acquisition linked to a Canadian auto parts company, the first time Wall Street has been on the hook for a big financing package since the Trump administration triggered a global trade war less than two weeks ago.

Typically, when a merger or acquisition is announced the companies involved immediately line up debt from banks, which then market it to investors in the leveraged loan and high-yield bond markets. On Tuesday, ABC Technologies Holdings Inc. closed its purchase of TI Fluid Systems Plc before the banks could sell the bonds ...