Banks Plan to Offload CVC’s Unilever Tea Debt at Steep Discount

Global banks are close to offloading one of the most high-profile debt deals weighing on their balance sheets, albeit at a significant discount.

Lenders are nearing an agreement to sell €1.5 billion ($1.56 billion) of a junk loan backing the buyout of Unilever’s tea business, known as Ekaterra, according to people close to the matter. The sale is expected to happen within the next week at a price in the low-to-mid 80% of face value, said the people, asking not to be identified because the talks are private.

At that price the banks would take a hit, but it would ...