Claire’s Stores Inc., the jewelry retailer owned by Apollo Global Management LLC, and Chesapeake Energy Corp. are offering bonds, as investor appetite for high-yield debt soars to the highest level since June.
Claire’s, graded Caa2 by Moody’s Investors Service and B- by Standard & Poor’s, sold $400 million of 9 percent, seven-year notes, according to data compiled by Bloomberg. Chesapeake, rated three steps below investment grade at Moody’s, may issue $1 billion of seven-year debt at a yield of about 7 percent today, said a person with knowledge of the offering, who declined to be identified because terms aren’t set.
“People are more comfortable with CCCs now than a month ago because of the rally in the market,” said Marc Gross, a money manager at RS Investments in New York who oversees $3 billion of fixed-income funds. That’s helping a company like Hoffman Estates, Illinois-based Claire’s sell debt, he said.