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June 19 (Bloomberg) -- The rally in high-yield, high-risk bonds may have spawned its first dividend deal in two years. Wendy's/Arby's Group Inc., which issued $565 million of 10 percent notes due in 2016 yesterday, will use the proceeds to repay debt and make a "distribution," potentially for dividends and stock repurchases, the Atlanta-based company said yesterday in a statement. Billionaire Nelson Peltz's Trian Fund Management LP is the largest shareholder of Wendy's/Arby's.

Increasing leverage to buy back stock does not create long-term shareholder value.