Ardonagh’s $2.3 Billion Bond Deal a Bank Win Over Private Credit

A group of banks led by Morgan Stanley and Goldman Sachs Group Inc. priced an upsized $2.3 billion high-yield bond deal to refinance UK insurance broker Ardonagh Group Ltd. debt after winning part of the financing from direct lenders.

The package has three tranches — a $1 billion unsecured bond, a $750 million secured note and €500 million ($539 million) of secured notes. Yields range from 6.875% to 8.875%, according to people familiar with the matter who asked not to be identified because the information is private. The dollar-bond portion was initially slated to be $1.5 billion.

The banks ...