Wraps Up $2.8 Billion Debt Sale as Issuance Slows – Bloomberg November 22, 2020

I saw this today – Wraps Up $2.8 Billion Debt Sale as Issuance Slows: Longer article, but here’s a glimpse; you can read the article in the link above.

Caleb Mutua Sunday, November 22, 2020

(Bloomberg) — Blackstone Group Inc. is looking to sell $2.8 billion of debt for its buyout of Inc. this holiday-shortened week, while just a handful of investment-grade borrowers are expected to come forward.

Marketing for Ancestry’s $1 billion high yield portion ends Monday, while commitments on its $1.8 billion leveraged loan are due the same day. Ancestry is the sole deal currently slated to price in high-yield, but it follows the busiest week for issuance in about two months with about $15.7 billion sold, according to data compiled by Bloomberg.

A drop in average yields to all-time lows earlier this month opened up the spigots for companies seeking to lock in low rates. Investors are also piling cash into funds that buy the risky debt, and there’s little sign of that demand waning.

Carnival Corp. received orders worth over $11 billion for its first unsecured bond offering since the pandemic with demand growing even after U.S. Treasury Secretary Steven Mnuchin unexpectedly called for several emergency lending programs to be stopped at the end of the year. The cruise operator also managed to boost the size of the deal, borrowing at a rate of just 7.625% without pledging any assets — far below the double-digit coupons on its bonds that sold a few months ago that were backed by idled ships.


About Wichita Genealogist

Originally from Gulfport, Mississippi. Live in Wichita, Kansas now. I suffer Bipolar I, ultra-ultra rapid cycling, mixed episodes. Blog on a variety of topics - genealogy, DNA, mental health, among others. Let's
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