Guggenheim Investments said its affiliates may purchase portions of a $1.18 billion loan issued by GIH Borrower LLC, following a sharp decline in the debt’s market value. The loan, due in 2031, traded as low as 73 cents on the dollar this week amid regulatory fallout linked to investigations into Mark Walter, owner of Guggenheim Partners.
The asset manager characterized the debt as an attractive investment opportunity after the price drop. By Tuesday, the loan was indicated at roughly 77 cents on the dollar, according to Bloomberg data. Guggenheim Investments disclosed the potential repurchase to lenders without specifying timing or volume.
The loan’s depreciation coincides with broader scrutiny of loans originated by Walter’s insurers and subsequently channeled into other parts of his financial network. Regulatory and legal developments have weighed on the valuation of related assets. A Guggenheim representative declined to comment on the potential transaction.
Corporate borrowers often repurchase debt at discounted prices through open-market purchases, negotiated deals, or tender offers, typically when securities are undervalued or when underlying businesses face liquidity constraints. The company did not elaborate on its strategy for the potential buyback.
