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Nathan’s Brings Hot Dogs to Junk-Bond Market With Inaugural Sale

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Nathan’s Famous Inc., the fast-food chain that started as a Coney Island hot dog stand in 1916, sold its first junk bond, raising money for a shareholder payout just as debt investors regain their appetite for risk.

The company issued $135 million in five-year debt, $10 million more than initially marketed, at a yield of 10 percent, according to data compiled by Bloomberg. The company planned to use $116 million of the proceeds for a dividend, it said Friday in a statement before the sale.