Economics
Junk-Bond Sellers Desperate for Funding Swallow Yields Over 10%
- Avis borrows at 10.5% coupon, Norwegian Cruise seeking 12.5%
- Royal Dutch Shell, Danske Bank lead those in European market
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U.S. companies hardest-hit by the coronavirus pandemic are continuing to tap the junk bond market, even if it comes at a double-digit cost.
Rental car company Avis Budget Group Inc. sold $500 million of bonds to yield 11.297%. Norwegian Cruise Line Holdings Ltd. is borrowing $600 million of four-year secured notes, which will pledge islands and ships as collateral and may come at a roughly 13% yield, according to people with knowledge of the matter.