Bank of America-Led Group Faces Loss on Pumpmaker SPX Junk Bond
- SPX Flow $570 million notes discussed at discount of 91 cents
- Bonds and loans will fund Lone Star’s buyout of the company
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A group of banks led by Bank of America Corp. is at risk of losing money on a junk-bond sale for pumpmaker SPX Flow Inc. after offering a steep discount on the deal to lure investors who are fleeing riskier assets.
The $570 million unsecured bond is being discussed at a discounted price of 91 cents on the dollar, which would bring the all-in yield on the debt to a range of 10.25% to 10.5%, according to people with knowledge of the matter.