# Citigroup Shelves $1 Billion Loan Deal for Auto-Parts Supplier Autokiniton > Autokiniton has paused efforts to amend and extend a roughly $1.05 billion leveraged loan after lenders balked at the terms, according to people familiar with the matter. - Source: Principle Post - Canonical URL: https://principlepost.com/article/citigroup-shelves-1-billion-loan-deal-for-auto-parts-supplier-autokiniton - Author: staff - Section: Business - Published: 2026-11-07T13:56:53.563Z - Updated: 2026-11-07T13:56:53.563Z - Tags: Citigroup, Autokiniton, leveraged loans, automotive, finance --- Autokiniton US Holdings, the automotive-component supplier, has shelved an attempt to amend and extend a roughly $1.05 billion leveraged loan, according to people familiar with the matter. Citigroup, which was leading the financing, has pulled the deal after it failed to attract sufficient investor demand. The company had already sweetened the terms in hopes of winning lenders over. The proposed extension was shortened by a year to 2030, the loan was offered at a deeper discount of 97.5 cents on the dollar, and the interest rate was set at 4.75 percentage points above the benchmark, the wide end of earlier discussions. ## A tough market for leveraged loans The setback highlights the challenging environment for corporate borrowers with lower credit ratings. Leveraged loan investors have become more selective as interest rates remain elevated and concerns about economic growth have made lenders reluctant to accept thin returns for risky deals. For Autokiniton, the failed refinancing leaves its existing debt structure in place and removes some flexibility the company had hoped to gain. The supplier, which makes metal-formed components and complex assemblies for automakers, had been looking to push out maturities and improve its financial runway. ## About Autokiniton Autokiniton is a portfolio company of KKR and provides structural components, chassis parts, and assemblies to major vehicle manufacturers. The company expanded its footprint through the acquisition of Tower International, a deal that added scale but also increased its debt burden. The auto-parts sector has been squeezed from multiple directions. Original equipment manufacturers are pushing for lower costs, electric vehicle production is changing component demand, and higher borrowing costs have made it harder for suppliers to refinance legacy debt. ## What happens next With the loan amendment on hold, Autokiniton will likely return to the market when conditions improve or pursue alternative financing. The company could seek a smaller transaction, negotiate with existing lenders directly, or wait for a broader recovery in leveraged finance appetite. The deal's withdrawal is another sign that banks and institutional lenders are still pricing in significant risk for highly leveraged companies, even those tied to industries as large as automotive manufacturing. --- Originally published by Principle Post. Free to cite with attribution and a link to https://principlepost.com/article/citigroup-shelves-1-billion-loan-deal-for-auto-parts-supplier-autokiniton.