Jaguar Land Rover Plans Junk-Bond Sale in Pounds, Dollars

Jaguar Land Rover Plc, the U.K. carmaker bought by India’s Tata Motors Ltd. in 2008, is raising 1 billion pounds ($1.64 billion) from pound- and dollar-denominated high-yield senior notes as low default rates fuel demand for junk debt.

The company is seeking to sell 500 million pounds and $400 million of bonds due in 2018 and a further $400 million of securities due 2021, a banker involved in the transaction said. The proceeds will be used for refinancing existing debt as well as for “general corporate purposes,” the luxury-car unit said in a statement. High-yield bonds are rated below Baa3 by Moody’s Investors Service and lower than BBB- by Standard & Poor’s.