Junk Borrowers Seek Riskier Loans While Market Is Receptive

Junk borrowers are taking advantage of strong investor appetite to bring riskier offerings to the US leveraged loan market before sentiment sours again over the Federal Reserve’s resolve to keep interest rates higher for longer.

Aramsco Inc., whose corporate rating is the lowest rung in highly speculative territory, is looking to borrow $505 million to fund its acquisition by American Securities. Wedding-planning site The Knot Worldwide Inc. plans to use part of its proceeds to fund a one-time distribution to employees and shareholders. Pharmacy benefits manager MedImpact Holdings Inc. wants to borrow $1.2 billion, with more than half structured as ...