Gap Prices $2.25 Billion Junk Bond to Shore Up Liquidity (4)

Gap Inc. raised $2.25 billion in the junk bond market on Thursday, up from $2 billion originally, as the clothing retailer looks to shore up liquidity amid disruption caused by the coronavirus, according to people familiar with the matter.

The company priced a $500 million offering of three-year notes at 8.375%, $750 million of five-year bonds at 8.625% and $1 billion of seven-year notes at 8.875%, and all three were at par, the people said, asking not to be identified because the matter is private. That is about one-eighth a percentage point less than price talk for each tranche. Pricing ...