TEN - Tenneco drops amid report banks shelved a a bond sale for Brightspeed LBO

Tenneco ( NYSE: TEN ), which agreed to be sold to Apollo for $20/share in February, fell 3.7% after a report that banks shelved a ~$1.9 billion junk-bond sale for Apollo Global's ( NYSE: APO ) deal to purchase Brightspeed.

Banks led by Barclays ended a junk-bond sale on Thursday to support Apollo's purchase of telecom and broadcom assets from Lumen Technologies ( NYSE: LUMN ), which will be run under the the Brightspeed brand, according to traders, who cited a Bloomberg report. Banks underwrote the debt portion of the deal and are responsible to provide the funding for the deal, which is expected to close on Monday. Lumens sharesfell 5.2%.

Tenneco slipped as investors are concerned on deals, especially financing for transactions, in light of current market volatility and the recent issues regarding the Citrix Systems sale to Elliott and Vista Equity, where banks that underwrote debt backing the deal are collectively headed for $500M in losses when the debt was auctioned off at a discount, according to media reports.

Tennecco also dipped 1% on Tuesday as some investors also cited some vague concerns about financing.

The move in the auto parts supplier comes after the shares gained 3.1% on Monday after Tenneco ( TEN ) and Apollo filed with European antitrust regulators for the deal, which many M&A investors had been waiting to happen.

Bloomberg a week ago reported that that banks are set to start a $5.4 billion debt sale in mid-Octobe r to finance the Apollo purchase of Tenneco ( TEN ).

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