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Investing.com - Wonder, the owner of Grubhub Holdings Inc., has approached lenders including private credit firms to raise between $400 million and $500 million to refinance the food delivery company’s existing debt, according to Bloomberg, citing people familiar with the matter.
The company is looking to incorporate a payment-in-kind (PIK) feature in the new financing arrangement, which would allow Wonder to defer at least a portion of its interest payments until the debt reaches its final maturity date.
Wonder is discussing an interest rate of approximately 13% with potential investors, which would include the PIK component, according to one person with knowledge of the negotiations who requested anonymity because the information is private.
Private credit lenders typically offer PIK structures to fast-growing technology companies that demonstrate predictable revenue streams but need to use cash to acquire new customers or develop new products.
The refinancing effort comes as Wonder seeks to restructure Grubhub’s financial obligations, though specific details about the existing debt terms or maturity dates were not disclosed by the sources.
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