After struggling to offload two risky loans, Deutsche Bank is struggling with multi-million dollar losses within its U.S. investment banking unit, the Financial Times reported. Deutsche Bank agreed to underwrite two loans for PE clients including one to fund the buyout of Smart & Final by Apollo Global Management and the other to back the spinout of Evonik, a German specialty chemicals maker, the story said. Deutsche Bank took a loss on a $340 million loan to Smart & Final after investors refused to buy the debt under original terms offered. The bigger 1.5 billion euro buyout of Evonik by Advent International also faced a lukewarm reception from investors and eventually priced at a discount of 95 cents on the dollar, the FT said.
CORRECTION: A prior version of this story said the Deutsche Bank took a $340 million loss on Smart & Final. That is incorrect. Deutsche Bank took a loss on a $340 million loan to Smart & Final. The story has been changed.