AI Fears Set to Raise Cost of Private Loan for Insurance Broker

Private credit lenders to a German insurance broker are pushing for a higher margin on a €1.2 billion ($1.4 billion) loan due to fears of the risks AI poses to the sector.

Discussions for the prospective refinancing of Global Gruppe’s €1 billion ($1.2 billion) loan involve a margin in the range of 500 to 525 basis points over Euribor, at least 50 basis points wider than levels contemplated during an abandoned sale process just a few months ago, the people said, asking not to be identified discussing confidential information.