RE:RE:What's going on????I meant that it's cheaper than the 7.75% and the 8.7% they were getting recently for LTD from Hedge Funds for unsecurred bonds. Yes you're right it's more expensive than ewhat we were expecting them to renew (5.5%). But they realized that their credit rating wasn't worthy of that rate, so they're taking advantage of the 7.1% rate of today, instead of paying 8.7% later.
I wish I would have Blackberry by now.
Jim99999 wrote: How do you figure it's cheaper? They are borrowing at 7.125% to pay debts that range from 5.75% - 6.125%.
Jim
BBDB859 wrote: Simple.
They are trying to aquire $1B to $1.2B from the Junk Bond market to get rid of the remaining debt that they couldn't get rid of, for 2022/23. They aren't waiting for the due dates for the next couple years to scramble for the funds when they're due in 2022/3. Smart. But costlier than a possible rate reduction to anticipated 5.5%.
That debt will be unsecurred, and cheaper at about 7.1%, for $1-$1.2B, and will be due 2026.
So basically they're clearing the runway till 2024. with the receipts from this placement.