Yahoo Inc. has completed a $1.6 billion financing transaction consisting of a term loan and a bond offering intended to refinance debt that was put in place when Apollo Global Management acquired the company in 2021.
The package includes a $700 million term loan B priced at 97 cents on the dollar and carrying an interest spread of 6.5 percentage points over the US benchmark. In addition, Yahoo placed $900 million of high-yield bonds maturing in 2031 that carry an 11% yield.
Both tranches were marketed and sold at rates that are higher than many other risky corporate debt issues this year. For context provided within the financing report, US leveraged loans have averaged pricing near 3 percentage points over benchmark in 2026, and the average yield on existing B-rated bonds has been roughly 7.2%.
Use of proceeds
The proceeds from the new debt will be used to repay loans originated in 2021 that helped fund Apollo’s $5 billion purchase of Yahoo from Verizon Communications Inc. Those earlier loans were set to mature next year. The refinancing replaces that earlier financing, which had been priced at a 5.5 percentage point spread over the benchmark and at 98.5 cents on the dollar.
Market implications
Investors in the new securities are receiving yields that stand noticeably above averages for similarly rated or structured debt this year. The term loan’s spread of 6.5 percentage points and the bond offering’s 11% coupon both compare to the market indications cited in the financing note: roughly 3 percentage points for leveraged loans and a 7.2% average yield for existing B-rated bonds.
Summary and outlook
Yahoo’s $1.6 billion refinancing exchanges the company’s 2021 buyout debt for new obligations that carry higher borrowing costs. The loan and bond pricing reflect a market that, in this issuance, demanded materially higher returns than the averages reported for leveraged loans and B-rated bonds in 2026.