Junk Firms Seize on Drought in Buyout Debt to Slash Loan Costs
Bloomberg 2026-07-09 18:33:44
Context: Several junk-rated companies, including energy-drink maker Celsius and sneaker firm Skechers, are taking advantage of favorable credit markets to renegotiate loan terms with lenders. This trend is allowing these companies to reduce the extra yield their loans offer compared to benchmark borrowing costs. The development was discussed on "Bloomberg Real Yield" with Bloomberg's Aaron Weinman and Katie Greifeld.
Key Facts
- The energy-drink maker Celsius and the sneaker firm Skechers, both junk-rated companies, are among those seizing on hot credit markets to secure better terms from lenders.
- These companies are sharply reducing the extra yield their loans offer compared to benchmark borrowing costs by renegotiating loan terms in the current favorable credit environment.
- The discussion on this trend took place on "Bloomberg Real Yield," a program hosted by Katie Greifeld, with Bloomberg's Aaron Weinman providing insights.