Cengage Learning Acquisitions has abandoned its effort to lower the rate on a $2 billion loan that it got last year to support its exit from bankruptcy as investors show signs of fatigue, Bloomberg News reported yesterday. The educational company had been seeking to cut its interest rate by as much as 1.5 percentage point amid a jump in refinancings that have reduced payments to investors. The loan declined yesterday to 99.938 cents on the dollar, down a cent from this year’s high in April, after the decision on Tuesday to scrap the repricing attempt, according to quotes compiled by Bloomberg. Borrowers have sought to lower rates on more than $63 billion of leveraged loans this year, squeezing yield from lenders as they take advantage of the drop in new deals in the market. Investors last week pulled $223 million from U.S. funds that buy leveraged loans, the most since the period through April 1, according Lipper.
