Bank of Montreal leads a consortium that offers a $775 million loan to Pellera Technologies, a software firm backed by HIG Capital. The deal carries an interest rate 4.5 percentage points above the benchmark and prices the debt at as low as 92 cents on the dollar. Investors have pushed for steep discounts after a year of holding leveraged‑buyout debt.

Pellera's debt has sat on banks' books since its leveraged buyout, creating a pressure point for lenders. The steep discount reflects broader market sentiment that debt banks face higher refinancing risk and tighter liquidity. A 92‑cent price signals that investors view the loan as much riskier than typical senior leveraged debt.

The transaction marks one of the steepest discounts in the U.S. leveraged‑loan market this year, underscoring a shift toward higher yield demands for distressed debt. For investors, the deal offers a chance to gain exposure to a potentially undervalued asset, while banks signal willingness to trim losses amid tightening credit conditions.

Market watchers note that such deep pricing may pressure other lenders to reconsider their own holdings of Pellera's debt, potentially triggering a wave of similar discounts. The deal also highlights the growing appetite for high‑return, high‑risk loans as traditional fixed‑income yields wane.