Nissan Motor has raised $4.5 billion from a junk bond sale in U.S. dollars and euros, with the embattled automaker offering a record-high coupon on at least one part of the deal to drum up demand.
One component carried a yield of 8.125%, topping Nissan’s previous record yield of 7.5% for a 10-year dollar bond issued in 1986, data compiled by Bloomberg showed. Despite concerns around the company’s strategic plans, it still attracted around $11 billion in investor demand for the junk bond sale, which will help refinance its debt burden.
Nissan’s multi-tranche transaction is part of a broader effort to raise more than ¥1 trillion ($6.8 billion), including through asset sales, to turn around the business, and follows a ¥200 billion convertible bond sale by the automaker earlier this week.
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