Wireless communication company Ligado Networks is preparing to pay a whopping 17.5 per cent interest rate in the US bond market this week, the most any company has shelled out to investors since coronavirus struck and the highest rate on any US corporate bond since 2011.  

The deal, which was initially due to close a week ago, has struggled to get over the line. People familiar with the terms said uneasy investors have demanded ever-higher interest rates to finance the company’s efforts to develop a network of 5G wireless spectrum across North America.

The back-and-forth with investors indicates the scale of financial distress at the Virginia-based company. But it also offers a sign that despite a cramdown in borrowing costs since the Federal Reserve cut benchmark interest rates close to zero, portfolio managers are still showing some discretion in doling out funding.