Friede Goldman Halter Withdraws Junk Bond Sale
Friede Goldman Halter had been expected to privately sell seven-year senior secured notes with a yield of about 12 percent, market sources said. RBC Dominion Securities Inc. was arranging the sale, which was originally expected to be completed last week.
The company withdrew its bond sale in an environment where investors have favored higher-rated junk bonds, which are considered the safest, and large bond sales, which are considered the most liquid.
Smaller bond issuers have often been forced this year to push yields to 12 percent or higher and sweeten sales with stock warrants, or cancel sales altogether.
Junk bonds, also known as high-yield bonds, yield more than higher-rated bonds in order to compensate investors for added risk.
