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The Owner of the Cleveland Cavaliers Gets a $1 Billion Payday from Cheap Bonds

Dan Gilbert, founder and chairman of Quicken Loans Inc. Photographer: Jeff Kowalsky/Bloomberg

Dan Gilbert, founder and chairman of Quicken Loans Inc. Photographer: Jeff Kowalsky/Bloomberg

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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.