Junk Bonds—Have They Lost Their Luster?
Kenneth M. Davidson
(Attorney with the Federal Trade Commission in Washington, D.C.)
141
Abstract
High‐yield bonds have made giant takeovers possible. The largest takeover recorded so far, Kohlberg, Kravis, Roberts & Co.'s (KKR) $24 billion acquisition of RJR‐Nabisco, was financed in large part by high‐yield bonds. Even though it was almost twice the size of the largest transaction up to that point, KKR had no trouble raising the money. Like many takeover financings, the offer was oversubscribed.
Citation
Davidson, K.M. (1990), "Junk Bonds—Have They Lost Their Luster?", Journal of Business Strategy, Vol. 11 No. 1, pp. 54-58. https://doi.org/10.1108/eb039351
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited