Sotheby’s to Sell $825 Million Junk Bond In Refinancing Push

Sotheby’s is seizing a window of opportunity to refinance debt due next year, before any disruptions from the US-Iran negotiations can derail capital-raising efforts.

The luxury auction house, which is owned by Franco-Israeli billionaire Patrick Drahi and Abu Dhabi-based ADQ, is looking to issue an $825 million senior secured, fixed-rate bond, according to a bond offering memorandum seen by Bloomberg. The proceeds from the five-year note sale will refinance a $765 million chunk of senior secured debt due in October 2027, and will also go toward general corporate purposes. The new notes will not be callable for two years.