The e-commerce giant has returned to the U.S. throwaway bond market to raise more funds for its mobile division and help pay down debt
Japanese rival Amazon.com Inc. expects to add another $200 million to a series of promissory notes first sold last year.
S&P is expected to give the securities a BB rating. The average yield for BB-rated borrowers is currently 6.77%, according to data compiled by Bloomberg.
The new Rakuten bonds could be redeemed at full discounted price by Nov. 30. The company is projected to raise 250 billion yen worth of two-year bonds in late January.
The high-yield market has been mostly closed over the past month. Demand has been declining as recession-fearing investors reallocate money in favor of safer blue-chip loans, and rising borrowing costs are keeping potential issuers on the sidelines. Nevertheless, junk bonds returned and rose for five consecutive sessions, with gains seen across all rating segments.