Nordstrom's deal disarray
Nordstrom said that it will halt its pursuit of a takeover, until at least after the holiday shopping season. The luxury retailer's market cap climbed to nearly $7.8 billion last month on news that it was in talks with private equity firm Leonard Green & Partners, but now has fallen back to $6.7 billion.
Why it matters: Because it's a reminder that not all leveraged loans are originated equally. Bloomberg reports that lenders were tying a 13% interest rate to prospective Nordstrom notes, thus souring the deal. Not only were banks spooked by luxury retail, but also recent events like the Toys "R" Us bankruptcy and a drop in the price of PE-backed PetSmart bonds.