Ligado to Pay a Record 17.5% on a Junk Bond to Avoid Bankruptcy

Ligado Networks LLC is dangling a record 17.5% coupon on a junk bond sale as its seeks to refinance debt and avoid bankruptcy.

The hiked interest rate is the biggest offered on a high-yield deal since at least 2002, according to data compiled by Bloomberg, and comes amid other sweetened terms as the borrower seeks to lure investors.

The wireless communications firm initially sought out a $4.3 billion debt offering, originally slated to price about a week ago. It targeted as much as $3.26 billion of first-lien debt split between a leveraged loan and payment-in-kind notes, and about $1 billion ...