Goldman-Led Lenders Brace for Loss on Arclin Debt as Demand Cools

A group of banks led by Goldman Sachs Group Inc. is bracing for losses on a debt deal backing chemical maker Arclin Inc.’s acquisition of DuPont de Nemours Inc.’s Aramids business after investors balked amid concerns about the industry’s volatility.

Arclin’s $1.1 billion leveraged loan sold at just 92 cents on the dollar — a steep discount that forced the group of banks to absorb losses to cover the higher borrowing costs they had promised the company, according to people familiar with the matter.