Apollo offered concessions on a $1.15bn junk bond for Shutterfly to appease investors uneasy about AI disruption. The deal caps earnings‑add‑back disclosures, limiting the company’s ability to inflate results with projected savings.

Shutterfly’s latest quarter saw a $19.7m EBITDA loss, up from $17.2m a year earlier, while revenue slid 8% to $313.5m. Liquidity stands at $474m against $2.4bn of debt.

Despite a headline yield of 12%, the bond was oversubscribed. The package also includes a $500m term loan at 6.5 points over benchmark, priced at 96-97 cents, and a $225m second‑lien term loan.

Apollo’s move follows a 2023 distressed‑debt exchange and a prior private‑credit proposal. The refinancing signals that even steep yields struggle to overcome AI‑related concerns among high‑yield investors.