Jefferies LLChas quietly sought out investors for the securitization deal with that was suspended aftera documentation scandal, and GoldmanSachs Group Inc. might soon follow suit, International Financing Review reported, citing unidentified sources.
The bank has been sellingtwo tranches yielding 4.25% to 7% to select investors, IFR reported, citing "two buyside sources with knowledge of thetrade." The two-year tranche has been sold, while the higher-class notes areabout 60% subscribed, the news outlet said.
Jefferies had planned a $150million bond that was suspended after the internal probe of loan documentsfalsification led to the resignationof LendingClub CEO Renaud Laplanche.
Goldman Sachs could look to revive the securitization deal ithad with LendingClub, which it suspended around the same time, if the Jefferiessale goes well, IFR said, citing unidentifiedbankers.