Winnebago Industries Inc., whose RVs have been a popular means of escape during the pandemic, is looking for ways to capitalize on recent success while preparing for the possibility that travel restrictions will be tightened again to contain the coronavirus.
Winnebago is one of many companies that has issued debt during the coronavirus crisis, taking advantage of strong investor demand by raising $300 million this month in its inaugural trip to the high-yield market. Companies issued $59.9 billion in high-yield bonds in June, roughly double the amount issued a year earlier and the highest monthly issuance on record, according to LCD, a unit of S&P Global Market Intelligence.
The company used most of the proceeds, about $250 million, to pay off a bank loan and shore up its finances, and is considering using the remaining funds to increase its production capacity, said Bryan Hughes, chief financial officer at the Forest City, Iowa-based company.
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