RE: RE: Petrobakken Energy Ltd. sells $900M in not Had a hard time getting into the Wall Street Journal site but google helped me. In issuing the notes (bonds, whatever) Petrobakken sold them at less than face value, so they only received $99.50 per $100 and took a $4.5M haircut right off the top, before underwriting fees. The purchaser theoretically gets the $100 face value at maturity so the discount is added to the yield to maturity which was stated as 8.713%..
Here's the text of the article.
By Katy Burne Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Three deals priced in the high-yield corporate bond market Wednesday from Petrobakken Energy Ltd. (PBKEF, PBN.T), meat processing company JBS USA and mobile broadband company Clearwire Corp. (CLWR).
Petrobakken sold $900 million of eight-year, 8.625% notes at a discount to yield of 8.713%, increased from a planned $750 million sale. The debt was rated Caa1 by Moody's Investors Service and CCC-plus by Standard & Poor's.