Yahoo has begun discussions with lenders to refinance approximately $1.6 billion in debt, according to a Bloomberg report, signaling early-stage efforts to restructure its capital stack under the ownership of Apollo Global Management.
The refinancing discussions are still preliminary and involve outreach to potential investors to gauge demand for a new debt package. The process reflects ongoing activity in leveraged finance markets as private equity-backed companies look to optimize debt structures amid shifting credit conditions.
According to the report, Yahoo is exploring a financing package that could include roughly $1.1 billion in leveraged loans alongside about $500 million in additional secured debt. Royal Bank of Canada is leading investor meetings to assess appetite for the proposed transaction, working with lenders and institutional investors as part of the early-stage syndication process.
The talks remain private and subject to change, and there is no guarantee the refinancing will proceed in its current form. Such processes often evolve based on investor demand, pricing dynamics, and broader market conditions.
The move comes as credit markets continue to absorb increased issuance from both private equity-backed companies and large-scale corporate financing needs. Refinancing transactions like this are commonly used to extend maturities, adjust interest costs, or improve liquidity positions without triggering major operational changes.
Yahoo has been owned by Apollo since 2021, when the firm acquired the business from Verizon in a deal that combined legacy internet assets, including Yahoo and AOL. Since then, Apollo has pursued various strategic and financial initiatives to stabilize and grow the platform while navigating evolving digital advertising and media markets.
