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Leggett & Platt Inc T.LEG


Primary Symbol: LEG

Leggett & Platt, Incorporated is a manufacturer that conceives, designs, and produces a range of engineered components and products found in many homes and automobiles. The Company’s segments include Bedding Products, Specialized Products and Furniture, Flooring & Textile Products. Bedding Products segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses for bedding brands. Specialized Products segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. It also produces and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries. Furniture, Flooring & Textile Products segment supplies a range of components for residential and work furniture manufacturers.


NYSE:LEG - Post by User

Comment by oilnvstron Nov 03, 2012 10:51am
264 Views
Post# 20558492

RE: RE: RE: RE: RE: RE: RE: RE: RE: Notes

RE: RE: RE: RE: RE: RE: RE: RE: RE: Notes

Yes, the bankers usually have first call on the assets, and they would never loan more than the NAV. The bankers have discretion as to the size of the credit line, so a borrower with high growth could likely borrow more than ~ 2 times current cash flow, on the assumption his cash flow would grow to service the debt. Each case is a little different. Despite high oil prices, favourable royalty regimes and new technology LEG (and many other companies) appear not to be able to grow based on their own cash flow, so rely on debt to finance growth. This is not sustainable in the long run, so banks simply stop increasing lending. This forces borrowers to seek out high priced unsecured loans (whether convertible or not) to stay on the treadmill until (they hope) somebody buys them out or perhaps their share price grows, and they can issue more shares.

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