Billionaire Dan Gilbert, whose Cleveland Cavaliers face declining odds of winning the 2015 National Basketball Association championship, is getting a consolation prize from the bond market: $1 billion of cheap debt.
Gilbert’s closely held Quicken Loans Inc. raised $1.25 billion on Friday in its first-ever bond issue, all but $250 million of which will flow to the parent company he controls, Rock Holdings. While junk-bond investors typically have extracted a premium from companies that borrow to pay their owners, buyers snapped up Quicken’s 5.75 percent, 10-year securities at a yield that’s in line with the average for the entire market, according to data compiled by Bloomberg.
