The company, which focuses on acquiring controlling stakes in businesses, issued 7.875 percent notes due July 2019 to yield 694 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The offering was marketed earlier this week for $650 million.
Proceeds will be used to refinance the company’s $500 million of 10.625 percent securities due November 2015, Harbinger said in a Dec. 10 statement distributed by Business Wire. The bonds traded at 106.3 cents on the dollar to yield 8.2 percent or 615 basis points more than similar-maturity Treasuries on Dec. 6, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Moody’s Investors Service graded the new bonds B3, six levels below investment grade, the ratings company said in a Dec. 10 statement. Deutsche Bank AG, Jefferies Group Inc., and Macquarie Group Ltd. managed the sale for the New York-based company, Bloomberg data show.
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