Junk Firms Seize on Drought in Buyout Debt to Slash Loan Costs

AI Summary

Junk-rated companies like Celsius and Skechers are leveraging strong credit markets to reduce loan costs by securing better terms from lenders. This trend of lower yields amidst drought conditions reflects changes in buyout debt financing.

Bloomberg's Aaron Weinman joins Katie Greifeld on "Bloomberg Real Yield." The energy-drink maker Celsius, the sneaker firm Skechers and other junk-rated companies are seizing on hot credit markets to secure better terms from lenders, sharply reducing the extra yield their loans offer compared to benchmark borrowing costs. (Source: Bloomberg)