Rakuten Offers $1.25 Billion Junk Bond in Return to US Market

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(Bloomberg) -- Rakuten Group Inc. is returning to the high-yield bond market with a $1.25 billion offering, in the latest move by the debt-laden Japanese...

-- Rakuten Group Inc. is returning to the high-yield bond market with a $1.25 billion offering, in the latest move by the debt-laden Japanese online retailer to try to bolster its finances.Tesla Has Wall Street Worried About How Many Cars It Just Sold

The debt offering comes after a $1.8 billion sale in January of bonds that yielded 12.125%, a record for a listed Japanese firm issuing in US dollars. Early pricing discussions for the new issuance are for a yield in the mid-10% area, people with knowledge of the matter said. Credit-default swaps insuring Rakuten’s bonds against nonpayment has been climbing since falling in February to the lowest since 2022, in a sign that market concern about its debt quality remains elevated. Rakuten Group shares, which rose the most in two weeks Monday on its plans to reorganize its fintech business, slid as much as 4.3%.The company will use the proceeds from the new bond sale to redeem or repurchase debt due in 2024 and later, the person familiar said.

 

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Rakuten Offers $1.25 Billion Junk Bond in Return to US MarketJapanese technology firm Rakuten Group Inc. is returning to the high-yield bond market with a $1.25 billion offering after a strong rally in debt it sold earlier this year.
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