A group of banks led by

Bank of Montreal

are looking to relaunch a loan supporting HIG Capital’s buyout of Converge Technology Solutions Corp., according to people with knowledge of the matter, four months after banks were forced to fund the deal when tariffs upended markets.

Lenders are in talks with investors over an approximate US$850-million leveraged loan, said the people, who asked not to be identified discussing private information. Discussions are ongoing and terms of the new launch may change.

A representative for BMO declined to comment. Representatives for HIG and Converge didn’t immediately respond to requests for comment outside of regular business hours.

Banks had looked to sell a US$1.1 billion leveraged loan tied to the buyout to investors in March. However, the lenders couldn’t offload their exposure to investors through usual syndicated loan channels after credit markets froze amid tariff announcements in April. Banks then had to fund the deal themselves when the acquisition closed on April 22.

The banks will hold onto the remaining portion of the debt through a so-called second-out tranche, the people said.

Through the acquisition, HIG merged its portfolio company Mainline Information Systems with Converge to form Pellera Technologies.

In light of tariff-induced volatility, Wall Street banks also had to postpone and fund other debt deals, including for ABC Technologies Holdings Inc.’s purchase of TI Fluid Systems PLC and Patterson Cos.’s buyout by Patient Square Capital.

Banks have since syndicated US$2 billion of debt related to the Patterson buyout and are offloading US$2.2 billion of ABC Technologies’ buyout loans to private credit firms.

Bloomberg.com