Roblox Fuels Debt IPO Frenzy With $1 Billion Junk Bond Sale

Video game developer Roblox Corp. is selling $1 billion of junk bonds, becoming the latest debut high-yield borrower in a year full of them.

The company is looking to sell 8.5-year senior unsecured notes to yield in a high-3% range, said a person familiar with the transaction. After talking to investors about the deal Monday morning, it is scheduled to price Tuesday, said the person, who asked not to be identified as the details are private.

Roblox will be the 85th company this year to bring a so-called debt IPO, according to data compiled by Bloomberg. Newly public companies riding ...