Billionaire’s Tool Firm Taps Loans for Fifth Payout in a Decade

  • Harbor Freight looking to raise $3 billion for dividend, refi
  • Loans funding distributions soar amid low rates, demand surge

Photographer: Bruce Bennett/Getty Images 

Lock
This article is for subscribers only.

Companies have been selling risky loans to fund payouts at the fastest pace in years. Harbor Freight Tools USA Inc., a discount tools retailer run by billionaire Eric Smidt, is the latest borrower looking to line its pockets.

The company, which sells $7.99 wrenches and $8.99 plier sets, is seeking to borrow $3 billion Bloomberg Terminalin what will be its fifth such deal in the past decade, according to data compiled by Bloomberg.