(Bloomberg) -- Jane Street Group LLC sold a $1.15 billion junk bond on Thursday and is repricing a $3.212 billion loan, raising additional capital for trading as the firm pushes further into fixed-income.
The company borrowed $150 million more from the junk-bond market than originally planned, marking its 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 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 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. Commitments on the loan repricing were due Thursday at 2 p.m. New York time.
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 to reflect that the bond has priced.)
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