Reuters reported a slow start to the year in the U.S. leveraged loan market is expected to ensure that a $4.3 billion highly leveraged loan backing pet retailer PetSmart’s private equity buyout will find buyers, despite a three-notch downgrade by S&P immediately before launch.

According to Reuters, the $4.3 billion, seven-year term loan B, which is the biggest U.S. leveraged loan to launch this year, was rated BB- and a proposed $1.9 billion note offering was rated B-.

Reuters said Citigroup is leading PetSmart’s loan and is a joint arranger with Barclays, Deutsche Bank, Nomura, Jefferies, Royal Bank of Canada and Macquarie. Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, RBC and Wells Fargo passed on the opportunity to arrange the deal in December due to high leverage, Reuters noted.

To read the Reuters articles, click here.