Yahoo raises $1.6B in bond deal with eye-catching 11% yield
What's the deal? Yahoo has raised $1.6 billion through a bond offering carrying an 11% yield, attracting significant investor attention. The Apollo-backed internet company is using the proceeds to refinance existing debt.
Why now? The refinancing comes as Yahoo, which Apollo Global Management took private, looks to manage its debt load and take advantage of investor appetite for high-yield corporate bonds. An 11% yield in today's market is generous enough to draw strong demand from fixed-income investors hunting for returns.
What could go wrong? High-yield debt carries inherent risk. An 11% coupon signals that credit markets view Yahoo as a borrower with meaningful default risk. If the company's revenue — largely driven by advertising and media — falters, servicing that debt becomes harder. The broader digital advertising market remains competitive, with Google and Meta dominating spend.
The signal: Yahoo's bond deal reflects two trends. First, private equity-backed companies continue to tap debt markets aggressively, using leverage as a core tool for financial engineering. Second, investor demand for high-yield bonds remains robust, even at a time of economic uncertainty. For Yahoo, the deal buys time — but the 11% price tag is a reminder that markets still see risk in the once-dominant internet brand's future.
Read more: uk.finance.yahoo.com
