Yahoo Inc.
has started discussions with lenders
to refinance
about US$1.6 billion of
leveraged loans
, according to people with knowledge of the matter.
Royal Bank of Canada
is leading investor meetings this week to gauge appetite for a possible US$1.1 billion leveraged loan and US$500 million in other secured debt, said the people, asking not be identified as the discussions are private.
The debt would be expected to mature in five years. Based on discussions so far, the secured debt could come with a yield of mid-to-high nine per cent, the people said. The loans could offer 5.5 percentage points over the United States benchmark and come at a discounted price of 98.5 cents on the dollar, they added.
Talks with investors are at an early stage and terms of the deal could change, the people said.
Representatives for RBC and
Apollo Global Management Inc.
, which owns Yahoo, declined to comment. A spokesperson for the online media company didn’t immediately comment.
Yahoo has approximately US$1.6 billion in leveraged loans maturing in September 2027, according to data compiled by Bloomberg. Both tranches of debt were sold at 5.5 percentage points over the benchmark, the data show.
Apollo bought the business from Verizon Communications Inc. in 2021 for US$5 billion. The company sold the existing debt in July of that year
to finance its buyout
.
—With assistance from Gowri Gurumurthy.
Bloomberg.com
Apollo-backed Yahoo kicks off talks on US$1.6 billion refinancing
2026-04-07 14:26:03
