Curo’s 2028 Secured Bonds Break Below 70 to a New Record Low

Curo Group Holdings Corp.’s secured 2028 bonds fall as much as 1.25 cents on the dollar to 68.75 cents, a new intraday record low for the 11-month old notes. They’ve been sagging following last month’s disappointing earnings and subsequent disclosure of Curo’s plans to sell its US direct lending business and acquire First Heritage Credit, a near-prime consumer lender.

• The decline pushed the yield to ~16%
  • The shares also fell to an October 2020 low
• S&P said in June 3 report the transaction “allows Curo to exit short-term consumer lending and transition to longer-duration, lower-risk U.S. consumer loans; however, ...