Plans to sell the loans for the leveraged buy-out of Clear Channel Communications beginning with $3bn at 90-91 cents on the dollar show banks are still having to offer discounts to unload risky debt from the credit boom.

On Tuesday, Citigroup, Deutsche Bank and a consortium of banks that funded the $17.9bn LBO held a meeting to begin marketing about $3bn in loans to investors. A person familiar with the deal said that they offered the debt at 90-91 cents on the dollar. The loan package totals $14bn, but the banks are expected to sell the remainder piecemeal so as not to flood the market.