3 days ago
Junk-Rated Debt Boom Faces Investor Fatigue as Some Deals Stall
It's been a borrowers' market for months, but signs of flagging investor zeal for the riskiest slices of debt are starting to trickle in.
PetSmart rewrote credit documents to block the bold, anti-lender maneuvers it once popularized. Spanish waste-treatment firm Urbaser SA offered similar concessions to wrap up a €1 billion ($1.2 billion) deal funding a dividend to its private equity owner. Meanwhile, a $1.55 billion leveraged loan for Station Casinos, was scrapped after rock-bottom pricing was snubbed by investors.
