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Big Buyout Borrowing

Russ Krull
March 25, 2013

New issues in U.S. corporate bond markets topped $38 billion last week, with four borrowers taking on more than $3 billion each to account for more than a third of the total. Here’s a look at who’s doing the borrowing and what they're doing with the money.

Bank of America (NYSE: BAC) floated $4 billion in new notes in four tranches with maturities ranging from three to 30 years. As is typical for financials, the use of proceeds statement didn’t offer anything beyond "general corporate purposes."

Comcast's (NASDAQ: CMCSA) NBC Universal broadcast $4 billion spread over three-, five-, and six-year notes. The money is headed to General Electric as part of the payment for the sale of NBC Universal.

Sticking with the buyout theme, Heinz (NYSE: HNZ) squirted out $3.1 billion in 7.5-year junk bonds to finance its buyout by Berkshire Hathaway and 3G Capital Partners. The Wall Street Journa