Newfold Junk Dividend Deal Draws Ire from Left-Behind Creditors

A junk-bond deal saddling a web domain company with more debt to help fund a payout has drawn the ire of some creditors who say they were left out of a related debt buyback that bailed out other bondholders.

Newfold Digital Holdings Group Inc., a web domain and hosting firm backed by Clearlake Capital Group and Siris Capital Group, sold the $515 million notes Friday at an 11.75% coupon — one of the highest seen on a new bond sale in recent weeks.

Dividend deals, which allow shareholders to saddle corporations with debt to pay themselves cash, have ...