Who wouldn’t love to have their company bought by Warren Buffett? Heinz creditors, that’s who.
The cost of insuring Heinz bonds against default more than doubled after the ketchup and beans maker got a takeover offer from Mr. Buffett’s Berkshire Hathaway and private equity firm 3G.
According to tracking firm Markit, the credit default swap spread on Heinz spiked by 116 basis points to 160 basis points. That’s far past the record for Heinz, and much worse than the spread on Berkshire Hathaway, Markit noted.