Action wants to sell $2M in "junk" debt. (Action Staffing, employee leasing company; junk bonds)

Action Wants To Sell $2M In "Junk" Debt

TAMPA

Action Staffing, the employee-leasing company, is trying to raise $2 million by selling what amounts to high-yield, unsecured loans to the investing public.

The loans -- termed "subordinated debentures" by the company -- carry a yearly interest rate of 12%.

In a filing with the Securities and Exchange Commission, the Tampa-based company said it does not intend to set up a so-called "sinking fund" to accumulate money to repay the debt when it comes due in 1998.

Companies typically establish sinking funds once they issue large amounts of debt, setting aside a certain amount of money each year to help cover the borrowings.

Nor, the company said, will the loans be secured by any corporate assets. …