Platinum Equity Hikes Yield on Junk Bond for Chainsaw Buyout (1)

Platinum Equity LLC hiked the yield on a junk-bond sale that helped fund its leveraged buyout of chainsaw chain maker Oregon Tool Inc. after investors balked at the company’s high debt load, according to people with knowledge of the matter.

The deal priced with a yield of 7.875%, according to the people, who asked not to be identified because the transaction is private. Pricing discussions on the offering began in the high-6% range, then increased to the 8% area during the sales process. The final yield is significantly higher than the 6.3% average on similarly-rated bonds, according to Bloomberg Indices ...