Junkiest Sale in Year Shows Extent of Europe’s Credit Rally

Flora Food Group BV is the first issuer in Europe rated one of the lowest levels of junk to sell bonds in nearly a year, a sign of investors’ insatiable appetite for risk.

The KKR Inc.-backed maker of Flora and Country Crock spreads priced €400 million ($471 million) of senior unsecured notes on Monday, a deal designed partly to refinance existing debt. The deal’s yield of 8.625% is about four percentage points lower than an index of similar-rated bonds, and the sale, from books opening to pricing, was completed in the same day. That’s fast for the high-yield market.