MJH Life Sciences Prices $430 Million Loan at a Steep Discount

(Bloomberg) -- A $430 million leveraged loan to help fund an acquisition by MJH Life Sciences was priced at one of the steepest discounts of 2025 amid investor wariness about some risky debt deals.

The loan was issued at a discounted price of 96.5 cents on the dollar, the largest in two months, according to data compiled by Bloomberg. Just eight deals this year have been completed at a lower level. The Bank of America Corp-led loan as a margin 3.75 percentage points over benchmark.

The deal first showed signs of trouble on Wednesday, when price talk was widened in an effort to attract investors. It’s among a series of leveraged-loan offerings that have received investor resistance of late amid a record supply of deals in the third quarter.

This week, a $5.8 billion loan-extension effort by chemical maker Nouryon was withdrawn amid concerns about higher costs in the sector. The deal included a $3.85 billion loan, the largest to be pulled from syndication since 2020, Bloomberg-compiled data show.

Representatives for Bank of America and private equity firm BDT Capital Partners, which utilized a $650 million term loan in 2022 to help buy a majority stake, declined to comment. MJH did not immediately respond to requests for comment.

Secondary-market prices for US leveraged loans have fallen in 10 of last 11 sessions, a Bloomberg index shows, with the past two days’ losses the biggest since April’s tariff tumult. Meanwhile, loans in Europe are poised for their largest drop in six months. 

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