(Bloomberg) -- Jane Street Group LLC is planning to sell $4.35 billion of debt on Thursday, repricing an existing loan and offering a junk bond to raise additional capital for trading as the firm pushes further into fixed-income.
The $1.15 billion junk-bond offering — $150 million more than originally planned — is the company’s second note sale this year, after a $1.4 billion issue in April. The latest bonds mature in eight years and Jane Street can’t buy them back for three years, according to a person familiar with the matter. The expected yield is 6.125%, down from price talk of around 6.25%, the person added, declining to be identified discussing private details.
The market-maker is also repricing a $3.212 billion term loan B due in 2028, according to a separate person. Jane Street is reducing the margin to two percentage points over the Secured Overnight Financing Rate, said the person, from the loan’s previous rate of 2.50 percentage points, plus a credit spread adjustment, according to data compiled by Bloomberg. The margin was originally discussed at 2.25 percentage points over the benchmark.
Proceeds from the bond sale will fund new trading capital, among other uses, with pricing expected to be set later on Thursday. Commitments on the loan repricing were due Thursday at 2 p.m. New York time, and the loan may price later in the day.
Jane Street’s ability to tap debt markets repeatedly underscores the strength of investor demand for its debt. The firm is on track for record annual revenue in 2024, raking in $8.4 billion in net trading revenue in the first half of the year, up 78% from the same period a year earlier, Bloomberg reported last month.
Bank of America Corp. is leading the bond sale and the loan deal, according to the people familiar. A spokesperson for the bank declined to comment. A spokesperson for Jane Street didn’t respond to a request for comment.
--With assistance from Michael Tobin and Paula Seligson.
(Updates deal size and pricing details.)
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