A Tale of Two Loan Markets

  • Company boosts the size of its U.S. loan by $2.25 billion
  • Other merger financings have struggled amid flight to quality
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Even as debt investors punish the riskiest borrowers amid the worst U.S. leveraged-loan slump since 2008, healthier companies are being embraced.

Avago Technologies Ltd. boosted a loan it’s seeking to finance its purchase of chipmaker Broadcom Corp. to $9.75 billion from $7.5 billion. The debt, which is the second largest to be offered to investors in the past five years, also stands out because it pays lenders a below-market rate.