Chick-fil-A Inc. sold $650 million of bonds in a private placement, according to a person with knowledge of the matter. The fast-food chain issued investment-grade debt as part of a financing effort, representing one of the few public market borrowings from the closely held restaurant company.

Private placements allow companies to raise capital from institutional investors without the extensive regulatory requirements of a public bond offering. Chick-fil-A, which maintains limited public disclosures as a privately held entity, accessed the debt market during a period of elevated interest rates that has increased borrowing costs for many corporate issuers.

The transaction signals the company's ability to access capital markets despite its private ownership structure. Investment-grade ratings typically afford borrowers more favorable borrowing costs compared to high-yield issuers. The deal comes as corporate bond issuance has remained robust even as the Federal Reserve has maintained higher interest rates to combat inflation.