Apollo’s Shutterfly Pays 12.5% on Crucial Junk-Bond Refinancing

Shutterfly LLC paid a hefty price to refinance some of its risky debt after selling a $1.15 billion junk bond at a yield of 12.5% and offering a raft of investor-friendly changes to get the deal done.

A group of banks led by Barclays Plc also switched plans to sell a $500 million leveraged loan. The first-lien loan is expected to be held by a private credit lender, while a riskier second-lien portion was increased to $250 million, according to bond documents seen by Bloomberg.

The photo-products company, acquired by Apollo in a 2019 leveraged buyout, has had a bumpy ...