UCI's soaring junk bond yield underlines default fears for Hart's auto parts firm

Fri, 04 Mar 2016

By Paul McBeth March 4 (BusinessDesk) - The yield on UCI Holdings' junk bonds has soared to 89 percent, a sign investors are worried about the risk of default by billionaire Graeme Hart's auto-parts business. The US$400 million of February 2019 bonds, which have a coupon of 8.63 percent, were sold during the 2011 leveraged buyouts by Hart's Rank Group of UCI for US$980 million and another auto-parts business, FRAM Group, for US$950 million. Holders of the debt include BlackRock, JP Morgan, Credit Suisse and Pimco, according to Reuters da...

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