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Valvoline’s Junk Bonds Leave Investors Clamoring for More

  • Investor orders were 12 times more than what Valvoline needed
  • Oil-change store operator locks in lowest coupon since June
Updated on

For an indication of just how thirsty investors are for anything that offers yield, look no further than Valvoline Inc.’s bond sale this week.

Investors sent the iconic oil-change store operator orders worth $4.5 billion for a $375 million note offering backing its split from parent Ashland Inc., according to a person with knowledge of the offering. That allowed Valvoline to lock in a rate of 5.5 percent -- the lowest for a junk-rated borrower in more than a month, according to data compiled by Bloomberg.