H.J. Heinz Co., the ketchup maker being acquired by Warren Buffett’s Berkshire Hathaway Inc. and 3G Capital Inc., canceled plans to distribute $2 billion of the $12 billion in loans backing the purchase in euros and pounds, according to a person with knowledge of the transaction.
H.J. Heinz Co. gave guidance on the rate it will pay on $12 billion of loans to support the ketchup maker’s $23 billion buyout by Warren Buffett’s Berkshire Hathaway Inc. and 3G Capital Inc. NBTY Inc. is seeking to reduce borrowing costs on a loan after a failed attempt to refinance the debt last month.
Junk-bond yields have fallen so far that the world’s biggest debt investors are turning to borrowed money to juice returns, a practice that magnified losses during the worst financial crisis since the Great Depression.
Air Medical Group Holdings Inc., the provider of emergency air transportation services, is marketing debt as sales of speculative-grade bonds to fund acquisitions triple from year-ago levels as a percentage of overall volume.