Demand for High-Yield Debt Revives

Claire’s Stores, Chesapeake Energy sell bonds as borrowing costs tumble.

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.

High-Yield Rally

“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.

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