DISTRESSED DAILY: Kohl’s Joins Rush to Refinance Rescue Debt

In 2020, many companies were focused on surviving. Now, they’re ready for rebuilding.

Retailer Kohl’s Corp. this week joined the rush of issuers refinancing pricey debt issued early in the Covid-19 pandemic last year. The move will help the company lock in borrowing rates near the lowest on record after its debt recovered from last year’s stress.

Soon after the pandemic took hold in the United States, Kohl’s borrowed $600 million at an eye-watering 9.5% coupon, despite its investment-grade rating. The steep price came after its existing notes due 2045 plunged as low as 66.25 cents on the dollar amid ...