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Companies Issue Debt to Bolster Pension Plans

Higher PBGC premiums have pressured firms to close funding gap.

By Katherine Chiglinsky and Claire Boston, Bloomberg | Updated on April 03, 2017

Employers saddled with swelling pension obligations and higher government fees on those liabilities are finding some relief in the corporate debt market.

Delta Air Lines, Verizon Communications and FedEx have issued more than $14 billion in bonds this year in which some proceeds were flagged for bolstering their retirement programs, according to data compiled by Bloomberg. Last year, General Motors did the same, and International Paper had a debt sale as part of a plan to fund expenses including pension costs.

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